FRANKFURT, Germany, Nov 3, 2025 (BSS/AFP) - Germany plans to begin a scheme 
to slash energy costs for power-hungry manufacturers in January, the economy 
minister said Monday, part of efforts to revive Europe's struggling 
industrial powerhouse.

Sectors like chemicals and steel production have long been complaining that 
high electricity prices in Germany are adding to their burdens.

The conservative-led government, which took power in May, has promised to 
bring them down as it seeks to turn around Europe's biggest economy following 
two years of recession.

"I am assuming that we will introduce the industrial electricity price from 
January 1, 2026," Economy Minister Katherina Reiche said at a conference in 
Berlin.

"We are in the final stages of negotiations with the European Commission".

Reiche did not give further details. But the Handelsblatt financial daily 
reported that, under proposals put forward for the scheme, it could cost the 
government up to 4.5 billion euros ($5.2 billion) over three years.

To implement the plan, Berlin needs an exemption from EU state aid laws that 
generally ban high national subsidies. Exceptions are permitted to protect 
domestic industries.

Reiche said lower power prices would in particular be "key to the 
competitiveness of steel".

Crisis talks are due to take place in Berlin Thursday on helping the 
country's steel industry, which is facing fierce competition from cheaper 
Asian producers.

According to the Handelsblatt report, an energy advisory body and think tanks 
suggest targeting a subsidised price of five cents per kilowatt hour, 
substantially lower than the average now, and some 2,000 companies could 
benefit.

Firms that receive the subsidies would be obliged to boost investments in 
reducing greenhouse gas emissions.

The plan has faced criticism from some quarters, including that it could 
discourage companies from lowering energy consumption, slow the green 
transition, and that it applies only to firms and not households.

German energy prices surged after Russia slashed supplies of cheap gas to the 
country in 2022 amid soaring tensions over Moscow's invasion of Ukraine.

While Berlin has found alternative sources of energy since then, prices still 
remain far higher than before the war began.