The industrial electricity price dominates energy policy, but the very start of the debate reveals a remarkable spectacle: leading coalition representatives are patting themselves on the back, even though reality is making their self-portrayal absurd. While politicians speak of historic relief, businesses are struggling with record prices and increasing cost pressures. This discrepancy seems almost cynical, as small and medium-sized enterprises (SMEs) and tradespeople are left empty-handed despite all the promises. Both groups bear the heaviest burden but receive no benefit whatsoever from the industrial electricity price. This creates an impression of political spin, which further damages the credibility of energy policy. At the same time, electricity costs and energy supply are collapsing under a subsidy framework that obscures more than it stabilizes.
Contradictions between Aspiration and Reality
The public’s enthusiasm for supposed tax relief masks structural deficiencies. While individual levies are decreasing, the effect remains superficial. The political direction is becoming blurred, while energy policy is losing its bearings. The target of five cents per kilowatt-hour, in particular, is proving to be a symbolic gesture without substance. The EU only allows the tax break for half of the electricity purchased, and significant funds are being channeled into transformation programs instead of genuine cost reductions. For many businesses, the available financial leeway is shrinking despite all the announcements, especially as electricity costs continue to rise.
At the same time, a dangerous divide is emerging: While some industrial companies receive at least minimal support, small and medium-sized enterprises (SMEs) and craft businesses remain excluded. This division weakens the country’s economic foundation and exacerbates existing competitive disadvantages. As a result, the industrial electricity price loses all strategic value and creates a climate of growing uncertainty.
Billions in costs without real benefit
The figures speak for themselves. The industrial electricity price is swallowing up billions, yet key problems remain at a high level. Electricity costs are barely falling, planning certainty is still lacking – and a subsidy model without a clear impact has only limited reach. The three-year term ties up enormous amounts of public funds, while the government is simultaneously working on expanding electricity price compensation. This item also devours billions without providing any fundamental relief.
As a result, the energy supply is sliding deeper into a structural deficit. Even the federal government’s assumption of the EEG (Renewable Energy Sources Act) costs is ineffective, as rising market costs erode any benefit. The energy sector is drifting, and SMEs and craft businesses are financing a system through taxes that doesn’t help them one bit. This imbalance jeopardizes the entire economic foundation.
A System on the Brink of Collapse
A sustainable approach begins much earlier. Without synchronized grid expansion, any prospect of stability is lost. Likewise, a modern energy policy demands consistent digitalization so that grid operators and businesses can precisely manage loads. Flexibility in electricity procurement is one of the most effective levers against rising electricity costs, yet this mechanism remains politically neglected. Companies need incentives to shift loads to avoid expensive reserve energy.
The electricity supply system is approaching a critical point. Inefficient structures are increasing dependence on ever-increasing transfer payments. The industrial electricity price remains a costly interim solution lacking genuine reform power. Without clear decisions, lasting economic damage is imminent. Only a radical structural overhaul can overcome the subsidy model and secure the future. Courageous reforms, not self-congratulation, will shape the path out of this crisis. (KOB)