Schweitzer demands more engagement from Merz for chemical dialogue - German industry sees sharp electricity price drop—but critics demand faster action
Electricity prices for German industry have fallen sharply over the past year, dropping from 43.2 cents per kilowatt-hour in 2022 to around 16.65 ct/kWh in 2024. Despite this decline, Rhineland-Palatinate's Minister-President Alexander Schweitzer has criticised the federal government for ongoing delays in addressing energy costs and supporting key industries. His latest letter to Chancellor Friedrich Merz urges stronger action to protect Germany's struggling chemical sector.
Schweitzer's frustration centres on the slow progress in lowering industrial electricity prices, even though a subsidised rate was finally introduced in 2026. Under the new scheme, energy-intensive firms in 91 sectors can access electricity at 5 ct/kWh for up to half their consumption, with additional tax refunds cutting costs further. Yet Schweitzer argues that delays have already harmed businesses, particularly as supply chains remain disrupted by the Iran conflict and surging raw material costs.
The Minister-President also took aim at Economics Minister Katherina Reiche for her handling of rising fuel prices, claiming her hesitation has burdened commuters and small businesses. His criticism extends to the government's broader industrial strategy, including the stalled Chemie-Dialog initiative—a pledge to make Germany Europe's top hub for chemistry, pharmaceuticals, and biotechnology. Despite earlier agreements, Schweitzer insists no meaningful action has followed.
Household electricity prices have seen smaller shifts, dipping from 40.2 ct/kWh in 2024 to 39.2 ct/kWh in 2025 before a slight rise to 37.2 ct/kWh in 2026. Wholesale rates, meanwhile, peaked at 27 ct/kWh in early 2025 before stabilising. Austrian prices now sit close to German levels, though no direct comparisons with other neighbours are available.
The federal government's new electricity subsidies aim to ease costs for energy-heavy industries, with net charges expected to fall by 1.3 to 2.4 ct/kWh following June 2024 decisions. However, Schweitzer's demands highlight ongoing concerns about delays and the broader impact on Germany's industrial competitiveness. The chemical sector, in particular, continues to face pressure from high energy costs and global supply chain instability.
