21 March 2013 16:58 [Source: ICIS news]
German federal and state leaders are meeting to address rising electricity costs, and in particular to discuss a proposed cap on a surcharge – called “EEG Umlage” – which electricity consumers have to pay to help finance the development of renewable energies.
VCI has been critical of the proposals to cap EEG as such a cap may be financed, at least in part, by eliminating or reducing exemptions from the surcharge energy-intensive industrial producers such as chemicals have under current rules - thus further driving up their energy costs and hurting their international competitiveness.
However, VCI said that it was not likely that major reforms would be agreed during the summit.
Instead Merkel and the states will likely opt for an interim solution, with a major overhaul of the EEG system coming only after the election, VCI said, citing discussions it had this week with members of parliament (Bundestag) from
Importantly, the politicians indicated to VCI that Germany-based energy-intensive industrial producers needed continued exemptions from electricity surcharges in order to maintain their competitiveness, the group said.
Even Gregor Gysi, who leads leftist opposition party Die Linke in the Bundestag, acknowledged chemical production as a pillar of
It would have been a big mistake had
However, in a separate media briefing earlier on Thursday, Hannelore Kraft, who heads the government of
Kraft is a member of the opposition Social Democrats, who hope to oust Merkel’s conservative-liberal coalition government in September.
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