Lindner urges reform of the electricity market

Created: 08/28/2022, 00:47

Federal Finance Minister Christian Lindner (FDP) in a press statement in Berlin.

© Fabian Sommer/dpa

What happens next in view of the exploding electricity costs in Germany?

According to the Federal Minister of Finance, politicians must counteract the “profit autopilot” for operators as quickly as possible.

Berlin - Federal Finance Minister Christian Lindner has called for speed in the reform of the electricity market.

"The federal government must address electricity prices with the utmost urgency," said the FDP chairman of the "Bild am Sonntag".

Otherwise "inflation will be driven more and more by an electricity crisis".

Lindner criticized the sharp rise in profits for the operators of wind turbines, solar systems and coal-fired power plants: "Politicians have set up a profit autopilot on the electricity market." Due to the applicable rules, the producers of solar, wind or coal-fired power would automatically be paid as if they had they bought expensive gas.

"Profits are increasing billion by billion at the expense of consumers."

Economics Minister Robert Habeck (Greens) wants to curb prices for consumers and industry with a fundamental reform of the electricity market.

A ministry spokeswoman said on Friday that efforts were being made to decouple the development of end customer prices for electricity from the rising gas price.

It is a medium-term project.

According to a report in the "Handelsblatt", the intended reform is intended to override a basic principle of today's electricity market: Up to now, gas-fired power plants have usually set the price on the electricity market, so the electricity price automatically increases with the gas price.

dpa