German Steel Association welcomes EU strengthening electricity price compensation framework

The European Commission has adopted an adjustment to its state aid guidelines on CO₂-related electricity price compensation, a move that Germany’s steel industry views as a crucial step toward restoring international competitiveness.

The Wirtschaftsvereinigung Stahl welcomed the decision, stressing its importance for energy-intensive industries. Kerstin Maria Rippel, Chief Executive Officer of the association, described the Commission’s move as a key milestone.

“The electricity price compensation scheme is indispensable to offset competitive disadvantages arising from CO₂-related costs embedded in power prices,” Rippel said. “It is a central building block on the path toward an internationally competitive electricity price. Such a price is urgently needed, because today’s uncompetitive electricity costs pose an existential threat, particularly to medium-sized electric steel producers that already operate with low CO₂ emissions, and at the same time slow down the steel industry’s transition to climate neutrality.”

According to Rippel, the fact that the European Commission has now stabilised and reinforced the framework sends a positive signal to the sector. She also highlighted the role of the German federal government in achieving the outcome, noting that a clear and unified position in Brussels was decisive.

Looking ahead, the association underlined that the result must now be firmly secured during implementation at both national and European level in 2026. Beyond the current decision, the industry’s long-term objective remains unchanged: to achieve a permanently internationally competitive electricity price for industry. From the steel sector’s perspective, this requires a lasting reduction in grid fees and the ability to combine an industrial electricity price with CO₂-related electricity price compensation.

Source and Photo: WV Stahl