Germany Weighs Cutting Power Subsidies for Industry Customers

(Bloomberg) -- Germany’s government is considering cutting electricity subsidies for energy-intensive industries in a move aimed to encourage off-peak power use and speed up the transition to a low-carbon economy. 

Companies can currently save as much as 80% of their grid fees if their annual power use is above a certain level. This spurs them to consume more power to stay above that threshold, and makes them less flexible on when electricity is used, according to an Economy Ministry document published by Parliament. 

In order to increase that flexibility, it’s necessary “to evaluate and, if applicable, adjust these rules” on subsidies, the ministry wrote in a response to a study by energy regulator BNetzA. 

Germany wants to get 80% of its power from renewables by the end of the decade, and increasing off-peak electricity use through flexible tariffs is a key part of achieving that goal. 

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