The plans of German Economy Minister Robert Habeck to subsidize electricity for energy-intensive companies have received criticism from Margrethe Vestager, the Vice-President of the European Commission, due to concerns over increasing costs.
Habeck, a member of the Greens, suggested reducing electricity prices for energy-intensive industries and those essential to the green transition as a strategy to prevent companies from relocating their production overseas due to increasing energy costs.
Energy-intensive industries should profit from a so-called “bridging electricity price”, he said, reported EuroActiv.
Read more: EU’s Vestager Calls To Relax Rules To Aid Sanction-Hit Companies
As per the Economy Ministry’s presentation on May 5th, the plan outlines that 80% of electricity needs should be met with a subsidized price of 6 cents per kilowatt hour (kWh) until 2030, aiming to ensure a supply of affordable electricity.
Commission Vice-President Margrethe Vestager expressed criticism towards Habeck’s proposal regarding the competition.
The Commissioner cautioned that offering discounted electricity to large companies, while others in the EU don’t have the same opportunity, requires careful consideration. She discussed the matter with various officials, including Finance Minister Christian Lindner and members of the Bundestag’s Economic Committee, during her visit to Berlin on Monday.
“We don’t have enough information from the plans of the German government to assess it,” said Vestager.
Featured News
Uruguayan Antitrust Scrutiny Puts Major Meatpacking Deal Between Marfrig and Minerva on Hold
May 19, 2024 by
CPI
Alaska Airlines Seeks Dismissal of Consumer Lawsuit Over $1.9 Billion Hawaiian Airlines Buy
May 19, 2024 by
CPI
Idaho Attorney General Orders Split of Kootenai Health and Syringa Hospital
May 19, 2024 by
CPI
Court Rejects T-Mobile’s Appeal Bid in Antitrust Case Over Sprint Merger
May 19, 2024 by
CPI
Google Requests Judge, Not Jury, to Decide on Antitrust Case
May 19, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI