According to Reuters article published on May 2, 2023, German Finance Minister Christian Lindner on Tuesday rejected a plan by Economy Minister Robert Habeck to introduce an industrial electricity price.
Such a move would be "economically unwise" and it would contradict market principles to rely on direct state aid as a means to achieve industrial transformation, he wrote in a guest article published by business daily Handelsblatt.
The economy ministry did not immediately respond to a request for comment.
The ministry had planned to introduce a concept for industrial electricity pricing this week as part of government efforts to support transition away from fossil fuels.
However, Lindner argued that an industrial electricity price would be unfair because it would come at the expense of other electricity consumers and taxpayers.
"Increasing competitiveness for some would thus mean a loss of competitiveness for others," Lindner wrote, adding that there was "no leeway in the already strained budget for correspondingly high subsidies".
Chancellor Olaf Scholz has also expressed scepticism over the plan.
"We will not be able to sustain subsidising everything that takes place in normal economic activity in the long run - nor should we get into the habit of doing so," Scholz said late on Monday.
Last year Berlin introduced electricity and gas price caps to shield industry and households from rising energy prices, but companies in Germany say electricity prices are still too high compared with other countries.
