HomeWorld RegionsEuropeGerman industry braces for 9 per cent power hike in 2012

German industry braces for 9 per cent power hike in 2012

Germanyࢀ™s big electricity consumers must face an average 9 per cent rise in their power bills for 2012 due to the countryࢀ™s nuclear phase-out, says their interest group VIK.

Seven of the countryࢀ™s oldest plants were shut in the summer along with Vattenfallࢀ™s Kreuemmel plant, cutting German capacity by 8821 MW.

ࢀœDue to the loss of production from eight nuclear plants the supply of power will become tighter,ࢀ said a VIK statement issued at its annual press conference.

ࢀœThis will result in price hikes and on top of that, the network stability and quality of supply will decrease.ࢀ

VIK chairman Volker Schwich forecast that some industrial buyers could face sizeable price rises. Network frequency changes have become more apparent since the nuclear withdrawal, which could affect sensitive industrial production, he added.

ࢀœItࢀ™s not about a candle-lit dinner but complex production processes whose stability, long before a publicly noticeable network black-out, can be threatened,ࢀ he said, according to Reuters.

VIK will gather data on potential damage from ࢀœinsufficient power qualityࢀ, he added.

The group will also try to secure a commitment from its members to cut their consumption if public grids become strained, although this would require substantial rewards, he said.

VIK represents firms that consume 80 per cent of power produced in Germany for industry ࢀ“ 243 billion kWh out of a total 530 billion kWh in 2010. Members include aluminium, chemicals, glass, paper, steel and cement makers.

For more Europe news click here