Czech steelmakers concerned about German industrial electricity prices

The Czech Republic should develop a plan to help steel mills with energy prices, similar to the one Germany plans to introduce. This is stated in a statement by Ocelarska Unie, an association that protects the interests of Czech and Slovak steel producers and processors.

The organization warns that different approaches by individual countries violate the single European market and could weaken the Czech Republic’s competitiveness.

The German government has presented a plan to introduce a so-called industrial electricity price of €50/MWh for three years, starting in January 2026. This will involve state support totaling €6.5 billion.

As noted by the association, Trinecke zelezarny (TZ), currently the only steel producer in the Czech Republic, consumes approximately 1 TWh of electricity per year. While German steel producers will pay €50/MWh thanks to subsidies, Czech industrial prices are around €100/MWh. The difference could mean up to CZK 3-4 billion ($140-190 million) per year for companies the size of TZ.

According to Roman Haide, CEO of Trinecke zelezarny, the company understands the German government’s steps as an effort to stabilize the industry in times of high costs and uncertain energy policy. However, without comparable conditions for the industry, the Czech metallurgical industry will lose its long-term sustainability.

“If the government does not provide clear support, there is a risk that steel production will disappear from the Czech Republic. This would mean not only the loss of jobs, but also part of our industrial self-sufficiency,” Haide emphasized.

Ocelarska Unie notes that in practice, German companies will receive double assistance from next year – from lower energy prices and from compensation for their emission costs under the Strompreiskompensation scheme.

The association points out that Germany’s program has not yet been approved by the EC as a form of state aid, but given the current rules of the CEEAG guidelines and previous practice regarding similar schemes in France and Finland, this is very likely.

Under the new Clean Industry Agreement, Brussels has opened up the possibility for member states to take temporary national measures to support industry, including energy subsidies or investment incentives. However, this gradually shifts responsibility for industrial policy from the European to the national level, Ocelarska Unie stressed, and economically stronger states gain an advantage in protecting their businesses.

It should be recalled that Italian industry associations have expressed concern about the announced German industrial electricity price as a step that distorts competition.