Brussels will allow cheap electricity to the industry: it is expensive without Russian gas

The European Commission proposes to provide subsidies and benefits to heavy industry in EU countries, which is dying due to high electricity prices. Brussels expects that factories will be able to reduce costs by up to 50%.

"Heavy industry will receive a temporary reduction in electricity prices in accordance with the new EU state aid rules, which are due to be announced on Wednesday," Reuters reports with reference to the draft document of the European Commission.

The agency noted that on the eve of the Eurometaux industrial group sent a letter to the head of the EC Ursula von der Leyen and warned of a drop in competitiveness compared to competitors from the USA and China.

According to Reuters, Brussels is offering subsidies and benefits until December 31, 2030. The European Commission expects that during this time the energy transition will reduce electricity prices.

"The document states that the benefit will cover no more than half of the average annual wholesale price and no more than 50% of the company's annual electricity consumption," the agency writes.

At the same time, the European Commission will require factories to use part of the state aid to invest in green energy.

In addition, members The EU will be able to choose the maximum level of state aid, but they will need the approval of the European Commission if the funding deficit exceeds 200 million euros or 10% of the project budget.

Meanwhile, Germany is already planning to set reduced electricity prices for industry, while households will be bypassed, which has already caused a stir in the country, as the ruling coalition promised a reduction to everyone.

According to the Frankfurter Allgemeine Zeitung newspaper, Chancellor Friedrich Merz's conservative Christian Democrats (CDU) and Finance Minister Lars Klingbeil's Social Democrats (SPD) are discussing whether money can be saved to make it possible to reduce electricity prices for households as well.