Following EU approval on April 16, 2026, the German government is introducing an industrial electricity price for the years 2026 to 2028 because high energy prices put energy-intensive companies at a disadvantage in international competition. The government is providing €3.8 billion for this purpose, while eligible companies will have to pay at least €50 per megawatt-hour. Companies from 91 energy- and trade-intensive sectors will be affected, but the fundamental problem remains: electricity is structurally too expensive in Germany. Companies with lower consumption, tradespeople, retailers, and private households will not benefit from this, even though they too are suffering from high costs.
Special discount instead of solving the underlying problem
The industrial electricity price only reduces electricity costs for selected companies. At the same time, the market price level remains unchanged and high. The state covers the difference, therefore no permanently cheaper electricity system is created.
For the rest of the economy, the measure offers little relief. Many medium-sized businesses continue to pay high prices. Therefore, the regulation exacerbates the unequal treatment in competition.
High system costs fuel the underlying problem
The root cause lies in the structure of the electricity system. Grid expansion, reserve capacities, and government intervention increase costs. Furthermore, there is a lack of stable, affordable baseload power.
The industrial electricity price does not address this. It changes neither grid fees nor the structure of electricity generation. Therefore, the fundamental problem of high electricity prices persists.
Imbalance between businesses and households
The measure only benefits large electricity consumers. Smaller companies receive no relief. This is particularly critical for businesses just below the subsidy thresholds.
At the same time, private households continue to pay high electricity prices. While individual industries are relieved of some of the burden, the vast majority of consumers are left out. Therefore, the pressure for a fair and comprehensive solution is growing.
Location policy is no substitute for a sustainable strategy
The German government wants to prevent industrial relocation and secure key industrial centers. This goal is understandable, but the measure remains temporary. It depends entirely on government funding.
However, a competitive location needs permanently affordable energy. Subsidies cannot replace this. Therefore, the industrial electricity price merely postpones the problems.
A permanent reduction for everyone is necessary
Germany needs a fundamental reform of electricity costs. Industry, trade, commerce, and households must all benefit equally. Only in this way can a stable economic location be created.
This includes lower taxes, more efficient grids, and more reliable generation. Furthermore, policymakers must transparently present the true costs of the energy transition. The industrial electricity price can provide short-term relief, but it does not solve the structural challenges. (KOB)