The Siempelkamp Foundry is leading the way and many other medium-sized companies in Germany are calling on the German government to adjust the electricity market design in the short term in order to effectively curb the high electricity prices. The experts of the German Association of Small and Medium-Sized Enterprises (BVMW) see the model of an electricity price brake developed by the member company Siempelkamp Giesserei as a quick and uncomplicated solution, which they are now specifically presenting to politicians. "The model of an electricity price brake combines the requirements of an immediate reduction of electricity prices for all consumers, the preservation of the incentive for energy savings as well as the impulse for an increased expansion of renewable energies in the best possible way and can be applied not only in Germany but throughout Europe," explains BVMW Chairman Markus Jerger.
Aim of the model: decoupling the electricity price from the gas price
The new electricity price model envisages adapting the existing merit order system for electricity trading by decoupling the electricity price from the gas price. Although only a small amount of electricity is generated in Germany with the help of gas, the expensive raw material is currently causing extreme price increases for electricity. If the prices for expensive gas-generated electricity are capped by government regulations, this dependence will be prevented. According to the model, however, the costs for this cap should not be borne by the state but should be financed through a levy that is borne equally by all electricity consumers. The fixed level of the cap can also create an incentive to save energy and ensure that electricity production from renewable energies remains lucrative. Compared to other proposed solutions, this model can be implemented throughout Europe within a few weeks, is easy to realize legally and lowers the electricity price directly.
Medium-sized companies are demanding a remedy for the high electricity prices NOW
The high electricity prices are becoming more and more of a problem for the entire SME sector. Companies are forced to raise prices, cut back on production or, in the worst case, even reduce staff. "We small and medium-sized enterprises have been waiting for months for a solution to combat this cost spiral from the politicians. We can no longer afford to wait any longer. We are very disappointed that an instrument to combat this inflation and recession-driving situation will possibly only be introduced in 2023", explains Dirk Howe, Managing Director of Siempelkamp Giesserei and member of the Federal Economic Senate of the BVMW. Therefore, the foundry, together with the other member companies of the BVMW, appeals for the immediate introduction of its own electricity price model in order to reduce electricity prices rapidly and sustainably. Several energy and economic experts have already analyzed the new electricity price model and found it to be quick and easy to implement. As a long-term solution, the Siempelkamp Foundry advocates the introduction of an industrial electricity price as a long-term solution: "In order to stop further energy price explosions and to promote stability in the market economy, we need this means," explains Howe and adds: "This is the only way to maintain industrial competitiveness in the long term and to effectively relieve consumers."
