Germany makes big industry pay more for power grid

[FBaggins]

Germany is to reduce exemptions that big power-using firms have enjoyed from grid fees following EU criticism that they might amount to state aid and anger among consumers that industry was not sharing the cost of a shift to renewable energy. Chancellor Angela Merkel's cabinet agreed on Wednesday to reduce the exemptions, which last year saved power-intensive companies around 300 million euros (262 million pounds).

The exemptions, which affect sectors such as chemicals, metals, glass and building materials, began in 2011 and have helped German industry to remain competitive despite some of the highest power prices in Europe. However, the European Commission expressed concern they could amount to state aid, while a German court ruled there was no legal basis for the special treatment.


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The idea is that through the higher contribution from industry, households and small firms will have to pay less. Merkel, facing an election in September, wants to make sure household electricity bills are kept in check as the costs of her "green revolution" soar. However, overall grid fees are bound to rise due to the massive infrastructure changes involved in Merkel's energy policies.

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The charges will go towards the construction of new power lines for wind-generated electricity from northern Germany to the south and to reserve power plants for the winter, needed to plug any power shortages and balance out volatile green energy supplies.

http://uk.reuters.com/article/2013/07/31/uk-germany-power-grid-idUKBRE96U0Q120130731