Italian associations concerned about German industrial electricity prices

Italian industry associations have expressed concern about the announced German industrial electricity prices as a step that distorts competition. This was reported by Il Sole 24 Ore.

Germany has announced a large-scale intervention to support its energy-intensive industry by introducing a fixed electricity price of €50/MWh for three years, starting in January 2026. This measure is intended to support industries such as paper, steel, chemicals, glass manufacturers, and the automotive industry.

In particular, the Assofond foundry association has expressed serious concern about the competitiveness of Italian foundries and, in general, the stability of the national manufacturing system.

“We hope that this move by Germany will serve as a wake-up call for the Italian government: the industry has run out of time and patience,” said Assofond President Fabio Zanardi.

According to him, Italian companies pay more for electricity than any other European country, and this difference weighs heavily on budgets and investment prospects.

“Germany is using the tools at its disposal to support its industry. Despite having less fiscal room for maneuver, we cannot afford to stand still,” he said.

Zanardi stresses the urgent need for concrete measures from the government. The Assofond president explained that the sector is still waiting for the operating rules of Energy Release (the Italian scheme to support the energy sector), which have been blocked for several months, and for compensation for indirect ETS costs. These measures are already planned and will provide immediate relief to businesses, he believes.

At the same time, Antonio Gozzi, president of the Italian steel producers’ association Federacciai, recently noted a deep asymmetry in the European market and mentioned the delay with Energy Release due to the EC’s intervention.

According to Gozzi, if Europe allows countries with greater fiscal capacity to guarantee energy prices that crowd out all competition, the region risks collapse. He referred to Mario Draghi’s report and stressed the need for a single European energy price and a common fund to support decarbonization. Only in this way can the EU build a competitive industry and a truly integrated market.

As noted by the German Steel Association (WVStahl), due to European state aid rules within the Clean Industrial Deal State Aid Framework, the industrial price of electricity bypasses the steel industry. The association considers it an important step to reduce network tariffs.