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Plans by Germany's economy and climate ministry to lower industry power prices with subsidies should not become reality because this strategy could prevent necessary industry transformation by keeping unviable companies alive, according to the . 鈥淒uring times of tight budgets and in light of the necessary efforts regarding renewable power expansion, we recommend to not introduce an industry electricity tariff,鈥� the economists said in a statement business newspaper Handelsblatt. Green economy and climate minister Robert Habeck had proposed to cap the power price for companies in competitive and energy-intensive industries at six percent per kilowatt hour until 2030 for about 80 percent of their demand. The measure has been estimated to cost the state some 30 billion euros. However, the finance ministry鈥檚 advisors said the price rebate could create a situation in which 鈥渘ecessary structural adaptation processes do not take place.鈥�

A different option would be to completely abandon Germany鈥檚 electricity tax, the advisors said. Finance minister Christian Lindner, from the pro-business Free Democrats (FDP), had also criticised his cabinet colleague鈥檚 idea, arguing that the regulatory conditions for businesses 鈥渟hould be improved across the board鈥� and taxes on power and energy should be reformed before new subsidies are contemplated. Chancellor Olaf Scholz has so far neither endorsed nor ruled out that Habeck鈥檚 proposal could become government policy, despite voicing concerns that EU subsidy laws could significantly limited the scope of intervention. 鈥淏ut we may take a look at it,鈥� Scholz said.

Energy-intensive companies in Germany should receive subsidies to lower their electricity costs if they promise to decarbonise and to stay within the country,聽Habeck said earlier this year. The minister at the time said he is 鈥渁ware of the concerns鈥� that such a state aid measure could irk neighbouring EU countries with less financial leeway. Habeck also announced plans to聽introduce so-called Carbon Contracts for Difference聽(CCfDs) that compensate energy-intensive companies for the extra costs of climate-friendly production.