“Social explosives”
Verdi warns about industrial electricity prices
September 12, 2023, 2:53 a.m
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The Greens and parts of the SPD want to grant industry a state-subsidized electricity tariff of around 5 cents. The Verdi boss says it’s not a good idea if citizens have to pay 35 cents. “I can only advise political actors against it,” says Werneke.
The chairman of the Verdi service union, Frank Werneke, has opposed a subsidized electricity price only for industry. “I can only advise political actors against a purely industrial electricity price,” Werneke told the Editorial Network Germany (RND). Many private households and social institutions would also have to be included in a state-controlled electricity price.
“It would be enormously explosive if a citizen who is barely making ends meet with the statutory minimum wage paid 35 cents per kilowatt hour for his electricity, while large industry only pays 5 or 6 cents through state subsidies,” explained Werneke. “And the shareholders of the corporations would then happily continue to be served,” he added.
From the trade unionist’s point of view, “electricity prices must be further reduced, but under no circumstances should this only apply to industry. That would not be socially responsible.” A much broader approach is needed. “There is also a great need for action in social facilities or the healthcare system, for example, and of course also in many private households,” said Werneke.
Lindner and Scholz, on the other hand
The coalition has been discussing relief for companies for months in view of the high electricity prices compared to international standards. Companies in Germany fear for their competitiveness. Associations warn of an increasing migration of production abroad.
Economics Minister Robert Habeck, the Green parliamentary group and the SPD parliamentary group want a subsidized industrial electricity price for a transition phase. The FDP is strictly against it, also because it is unfair to only relieve industry and not medium-sized businesses and citizens. FDP leader Christian Lindner argues that there is basically no scope for this in the budget. Unlike his Social Democratic comrades, Chancellor Olaf Scholz has so far rejected a “permanent subsidy of electricity prices with a watering can”.