Brake does not help everyone equally: medium-sized companies grumble about being disadvantaged when it comes to gas prices

The gas price brake could cost the state almost 100 billion euros.

Brake does not help everyone equally: medium-sized companies grumble about being disadvantaged when it comes to gas prices

The gas price brake could cost the state almost 100 billion euros. Despite this gigantic sum, some medium-sized companies with energy-intensive production continue to see their existence threatened. Above all, they complain about unequal treatment compared to large industrial companies.

Rolf Frohwein has already prepared for the worst. The managing director initiated the end of his company, the traditional porcelain manufacturer Eschenbach. All of the approximately 100 employees have been informed of their imminent termination. In February, after 130 years of porcelain production, the energy-hungry kiln in Triptis, Thuringia, went out - unless the state stepped in.

"We have electricity and gas consumption of 860,000 euros this year," says Frohwein ntv. "If we continue to produce, that would increase to over 4.5 million euros." This is not acceptable for the medium-sized company. Corresponding price increases for their own products are not possible. But it's not too late, says Frohwein. But the entrepreneur is skeptical as to whether the gas price cap, for which the expert commission has now submitted its proposal, is sufficient to reduce energy costs to a level that Eschenbach can bear.

The expert proposal provides for two different relief paths for companies. Craft businesses and other small and medium-sized companies should be treated on an equal footing with private consumers. They are to be reimbursed a monthly payment in December, and from March the price for 80 percent of their consumption is to be capped at 12 cents gross per kilowatt hour. For large industrial companies, on the other hand, a gas price cap of 7 cents will apply from January - albeit for the net purchase price and only for 70 percent of demand. None of this has been decided yet. Numerous sectors, associations and companies have reported to the federal government that there is a need for improvement.

Is this relief package enough for energy-intensive companies like Eschenbach? Twelve cents per kilowatt hour is too much, says Frohwein. Even seven cents would be more than double the previous gas price and would therefore be at the limit of what is bearable. "I'm afraid, however, that we will be classified as small and medium-sized."

Other medium-sized companies also complain about the distinction between large and small producers. "It is extremely unfair that the industry can work with a cheaper gas price cap," says Rabea Lehfeldt ntv. Craft bakeries are in direct competition with industrial manufacturers who sell their products in supermarkets. The competitive advantage of the big ones is reinforced by the fact that the price cap should apply to them from January, but only two months later for craft businesses.

Economist Clemens Fuest, head of the Munich Ifo Institute, knows the objections of the entrepreneurs. "Medium-sized companies will still have a lot of extra workloads," says Fuest ntv. This is "unsatisfactory" for the individual. But the state cannot absorb the full additional costs. In addition, the gas price brake with its blanket regulations does not help all companies to the same extent. "Some will be able to bear this additional burden, but others will not," said Fuest. Business associations also see it that way, which is why they are calling for a hardship fund for companies threatened with bankruptcy as part of the relief package.

Fuest also emphasizes the need to receive a "savings incentive", which is why the price for the entire energy requirement should under no circumstances be capped. In view of the fact that, as things currently stand, Germany will probably have around 20 percent less gas available this winter than in previous years, politicians and representatives of the expert commission have repeatedly pointed out the need to force gas consumers to save through the price.

For many energy-intensive medium-sized companies or craftsmen, however, this idea is unrealistic. "We can't just bake our bread half-finished," says Lehfeldt, who runs the bakery. For Eschenbach, too, the only way to significantly save gas at the moment is to shut down production, says Frohwein. Alternative energy sources such as hydrogen would probably only be available in sufficient quantities in 10 to 15 years.