Electricity price package: "Unsuitable and disappointing"

Infraserv Managing Director Dr. Joachim Kreysing comments on the federal government's plans: "Cost relief in homeopathic doses"

Dr. Joachim Kreysing, Managing Director of Infraserv Höchst, has described the "electricity price package" announced by the German government to reduce the cost burden on energy-intensive companies as completely inappropriate and disappointing. "This package does practically nothing for the companies that urgently need support in the current situation. Cost relief will only be provided in homeopathic doses, if at all," commented Dr. Joachim Kreysing on the German government's plans. "The impending migration of production capacities to other countries will not be stopped by this announcement by the German government, but rather accelerated."

The planned reform provides for a reduction in the electricity tax for the manufacturing industry from the current maximum of 1.50 cents per kilowatt hour to 0.05 cents. Although this reduction will benefit the broad industrial SME sector, it will not help the chemical industry. Up to now, energy-intensive chemical companies have been relieved of electricity tax via the so-called "peak equalization". The German government wants to abolish this peak equalization from 2024. The associated additional burden is now to be compensated for by the planned reduction in electricity tax. "This will prevent a further increase in costs. There can be no question of reducing costs," explains Dr. Joachim Kreysing. Like the German Chemical Industry Association, he continues to call for a bridge electricity price of 60 euros per megawatt hour. This corresponds to around half the current exchange price for electricity, but would still be significantly higher than the electricity price in the USA, for example. By way of comparison, the reduction in electricity tax would result in a relief for energy-intensive chemical companies in the low single-digit euro range per megawatt hour - a very small drop in the ocean.

"With the planned measures, the German government is failing to provide targeted support to companies that are in international competition and are not competitive due to high energy prices," states Dr. Joachim Kreysing. "The future prospects of energy-intensive production in Germany will not be improved by the federal government's planned package of measures."

About Infraserv Höchst

Frankfurt-based Infraserv Höchst, an experienced developer of research and production sites, provides sustainable, intelligent and efficient solutions for the chemical and pharmaceutical industries. The services offered by the company, which also operates Industriepark Höchst, include utilities, waste management, grid operation, site services, health and safety, environmental protection and facility management. The subsidiaries in the Infraserv Höchst Group supply logistics, education and process technology services.

Infraserv GmbH & Co. Höchst KG has around 2,100 employees and 200 trainees on its payroll. The Infraserv Höchst Group as a whole has around 3,000 employees and 230 trainees. In 2022, Infraserv Höchst and its subsidiaries, Infraserv Logistics, Infraserv Höchst Prozesstechnik, Provadis Partner für Bildung und Beratung and Thermal Conversion Compound, generated around EUR 1.6 billion in revenue.

Covering 460 hectares, Industriepark Höchst is home to some 90 companies in pharmaceuticals, biotechnology, basic and specialty chemicals, crop protection, food additives and services. Around 22,000 people work here. Total investment since 2000 amounts to roughly EUR 8,5 billion.