German steelmakers insist on a permanent solution for high electricity tariffs

The industry demands long-term government support to reduce electricity transmission costs and ensure competitiveness

Four German energy network operators have announced preliminary nationwide electricity transmission tariffs for next year. Thanks to a planned government subsidy to cover network costs in 2026, these are expected to fall by around half. This is according to a statement by the German Steel Association (VWStahl).

“For the steel industry, this is a much-needed and long-awaited relief,” said Kerstin Maria Rippel, CEO of VWStahl.

Over the past two years, sharp increases in tariffs have become a serious burden on the industry’s international competitiveness. German steelmakers are facing global overproduction, subsidized imports of cheap steel, and a weak economic climate. Since 2023, electricity transmission costs in the country have risen by 130%, which means an additional €300 million per year for the industry.

“It is therefore now crucial not only to approve the €6.5 billion state subsidy for 2026, but also to ensure its stability for the future,” Rippel emphasized.

She stressed that the current bill only applies to 2026.

«We call on the members of the Bundestag to ensure that the network cost relief continues after 2026. Annual decisions create uncertainty, which is detrimental to investment. Today, companies need long-term predictability to remain competitive and achieve climate goals,» added the CEO of VWStahl.

At the same time, network modernization costs in Germany will remain high, and electricity prices exceed those in many other countries. Therefore, companies need a long-term solution for a stable, competitive industrial electricity supply – and a reliable cap on transmission tariffs is the first step in this direction.

In July 2025, the Bundesrat supported a resolution by the state of North Rhine-Westphalia calling for the rapid implementation of a European action plan for steel and metals. In addition, at the request of three states, a requirement to hold a national steel summit was included. These actions were welcomed by the German Steel Industry Association (WVStahl).