Germany’s Finance Minister Lars Klingbeil (SPD) has welcomed new steps by the European Commission aimed at lowering energy prices for industry, praising what he called a “good solution” on electricity price compensation. “The expansion of electricity price compensation is very good news for German industry,” Klingbeil said on Tuesday following the announcement from Brussels of changes to EU guidelines on state aid. He said the measures would lead to “noticeable relief in energy costs from 2026.”
The chemical industry and the IG Metall trade union also welcomed the EU decision. Electricity price compensation exempts particularly energy-intensive companies from costs arising from the CO₂ emissions trading system. In November, coalition leaders agreed to extend the compensation to additional sectors and to increase it “where permissible under state aid law.”
On Tuesday, the European Commission announced that it had adopted changes to its guidelines on certain forms of state aid. The list of industrial sectors eligible for electricity price compensation will be expanded. According to the Commission, this will now include areas such as organic chemistry as well as parts of the ceramics, glass and battery industries. For sectors already receiving compensation, the eligible share of electricity costs will increase from 75 percent to 80 percent.
Klingbeil described this as an “important improvement.” “The solution we have found fits seamlessly into the EU framework for industrial energy prices and ensures fair competition within the EU,” Klingbeil said, thanking EU Competition Commissioner Teresa Ribera for “the good solution we have now found.”
The finance minister added that the German government remains “in intensive talks with the European Commission” regarding the planned industrial electricity price. SPD parliamentary group manager Dirk Wiese said he was “confident that the industrial electricity price will also cross the finish line very soon.” The German Chemical Industry Association (VCI) welcomed the EU decision, calling it “a good day for energy-intensive industry.”
“The European Commission recognises the intensified international competition,” said VCI chief executive Wolfgang Große Entrup. “That is the right signal. Electricity prices in Europe must finally come down.” He added that he hoped the German government would “not let up” in its talks on the industrial electricity price. “Only together can both instruments reduce the massive cost disadvantages compared to other regions of the world,” Große Entrup said.
IG Metall echoed this view. “In particular, the possibility of double funding from the industrial electricity price and electricity price compensation is absolutely necessary and must be introduced,” said IG Metall vice-chairman Jürgen Kerner. The EU Commission’s decision was “a first step in the right direction,” he said, adding that “further steps must now follow quickly.”
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