Measures for electricity costs are otherwise temporarily locked in the industry

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By Harry Floudopoulos

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The domestic industry is at a dead end due to the high energy costs that have resulted from the energy crisis. In fact, according to industry figures, there is a significant risk even for the viability of processing plants, with the result that if there are no immediate measures, painful measures will be considered.

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These include the suspension of some plants from April, when the current explosive prices of gas and electricity are expected to be passed on to consumption.

“The equation does not work out, the industry is facing the suspension of operation if no measures are taken by April”, says to the president of the Union of Industrial Energy Consumers A. Kontoleon.

According to industry estimates, the only way out is to temporarily suspend operations in the face of rising energy prices, as most producers cannot pass on the huge energy costs they have incurred.

It is characteristic that, according to information, a large industrial group estimates that the current increases in the price of gas and electricity, which will appear in the April tariffs, lead to price increases estimated at several tens of millions of euros. It is easily understood that the solution of operation suspension is preferable to the operation due to damage due to energy costs.

It is worth noting that the energy crisis has led to the suspension of major energy-intensive industries across Europe, most notably the example of the aluminum industry which counts numerous padlocks.

According to recent statements by European Aluminum CEO Gerd Goetz, energy bills have risen by 300% and large foundries are forced to close, leaving Europe with 700,000 tonnes of aluminum production in the months of the energy crisis, 30% of primary production. .

According to industry players, it is clear that the measures announced and implemented are not enough and further strengthening of domestic production will be needed in order to avoid the worst.

It is noted that yesterday, during the presentation of the Repower EU initiative by the Vice President of the European Commission F. Timmermans and the Commissioner for Energy K. Simpson, it was stressed that the Commission will update the rules on state aid in order for Member States to compensate companies for losses due to the crisis.

As for the financing of the measures, it is proposed either the utilization of the revenues from the sales of pollutant rights (which is already applied in Greece but is not enough to take further measures) or the taxation of the extraordinary profits enjoyed by the generators due to the increased prices in the market. from the rise in the price of gas.

In this proposal, industry circles estimate that the solution to the equation for the necessary strengthening of the measures to deal with the energy crisis may be found.

Source: Capital

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