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Germany Signals January 2026 Start for Industrial Power Price as Merz Calls Steel Summit

The government signals energy relief for heavy industry alongside EU plans to tighten steel import rules.

Overview

  • Economy Minister Katherina Reiche said she expects an industrial electricity price to take effect on January 1, 2026, with EU state‑aid approval in its final stage.
  • The emerging design would cap support to half of a firm’s consumption, require a minimum price of €50/MWh and be limited to three years, with a Dena concept pointing to a target of €0.05/kWh and roughly €4.5 billion in total costs over three years.
  • Reiche also flagged an expected decision in the coming weeks to extend compensation for indirect CO2 costs beyond 2030, a key ask for steelmakers.
  • Chancellor Friedrich Merz will host a November 6 meeting with industry and regional leaders to address energy relief, trade measures and sector resilience.
  • The EU has proposed nearly halving duty‑free steel import quotas and levying a 50% tariff above them, while Vice Chancellor Lars Klingbeil urged a full stop to Russian steel and unions pressed for procurement preferences tied to job and investment commitments.