Energy prices were high even before the Ukraine war. As a result, many companies have been waiting to procure electricity and gas. Then came the war – and with it energy became even more expensive.
The Association of German Chambers of Commerce and Industry warns of a cost explosion for companies due to the sharp rise in energy prices as a result of the Ukraine war. The DIHK called on the federal government to take short-term stabilization measures.
According to the DIHK, many companies are currently facing a dilemma. Every second company still has to contractually secure its electricity and gas supply for the current year, the DIHK explained to the German Press Agency, referring to a current company survey. “This means that every second company is facing a cost explosion that can hardly be contained,” says Deputy DIHK General Manager Achim Dercks.
When the war broke out, half of the companies had not yet completed their electricity and gas procurement for the current year, citing 2,000 responses from companies from all sectors.
Dercks: The abolition of the EEG surcharge is an important signal
The high number can be explained by the fact that many companies have waited due to the already extremely high prices of the last few months or have only concluded supply contracts for short periods of time. In the past, many companies would have procured once a year for the next twelve months. “That has changed significantly as a result of the current price spiral,” says Dercks. A medium-sized company from the glass industry paid an average of 100,000 euros per month for its energy supply in 2015. Currently five to six times the amount is due for this, sometimes even more.
The planned early abolition of the EEG surcharge via the electricity bill on July 1, 2022 is an important signal. “But it can only offset a fraction of the higher procurement costs,” said Dercks. “Now short-term stabilization measures are needed, such as a reduction in state levies and the electricity tax together with low-interest KfW loans or even direct emergency payments. In the medium term, we need solutions to keep energy costs in Germany at a competitive level.”
Increased interest in direct supply contracts for green electricity
According to the DIHK, the current price explosions are hitting German industrial companies harder than their international competitors. Even before the attack on Ukraine, German medium-sized companies had to pay the highest electricity prices in Europe. Many companies have already been looking for a way out of this crisis in recent months. Where possible, the procurement strategy has already been improved. More than 70 percent of the companies would also be interested in long-term direct supply contracts for green electricity.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
