Reduction of network charges
Habeck wants the state to pre-finance network expansion
19.09.2024, 17:09
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Consumers finance a large part of the expansion of the electricity grids through network fees. Economics Minister Habeck wants to reduce this cost block and have the state pay the expansion costs in advance. After all, it is a task for generations.
Federal Minister of Economics Robert Habeck is calling for the state to pre-finance the expansion of the electricity grid in Germany. The lines are not for the next few years, they are investments for the next generations, said the Green politician during a visit to the Georgsmarienhütte electric steelworks. “It is necessary to spread the costs over this period.” This means that we will pre-finance these costs with state money in order to reduce the grid fees now. “That is what I am advocating.” This was also planned before the Constitutional Court ruling on the federal budget, so he does not see any political dispute. However, the money now needs to be reorganized.
The electricity grids must be expanded, especially from north to south, in order to bring wind power to the industrial areas of the west and south. The costs are passed on to the electricity prices. This is why this block has recently risen sharply and is expected to continue to rise. For private consumers, it accounts for around a quarter of the electricity price. In industry, it is usually higher; in Georgsmarienhütte, it is now over 50 percent.
“This is pulling the rug out from under us,” said Alexander Becker, the company’s managing director. A significant portion of the planned investments cannot be implemented. “This trend will continue,” he predicted. “We absolutely need support with network charges.” Otherwise, the company will continue to lose competitiveness.
In 1994, the electric steelworks in Georgsmarienhütte replaced steel production in coal-fired blast furnaces with an electric arc plant using its own funds. The plant consumes about as much electricity as the entire neighboring city of Osnabrück. It produces steel from scrap and refines it further. In return for this so-called compensation, a new plant was put into operation at the beginning of the year, which now uses renewable electricity instead of natural gas. A second plant, funded by the Ministry of Economic Affairs, is scheduled to go into operation at the end of 2026. Georgsmarienhütte has a turnover of around two billion euros with 6,000 employees in 50 countries.