Ahead of February's general election in Germany, the country's industry leaders raised the alarm. They urged the new German government to do something against high electricity prices and warned of business closures and companies relocating abroad if nothing happened.

Their concerns appear to have resonated with the new coalition government of the conservative CDU/CSU party alliance and the Social Democrats (SPD) headed by Chancellor Friedrich Merz.

After only a few weeks in office, it is planning significant relief measures, but some experts are warning of potential downsides.

It's hard to pinpoint a single figure, as existing relief from electricity costs varies depending on company size and sector.

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According to a study by the Bavarian Business Association (vbw) based in Munich, Germany's industrial electricity prices were around the European average in 2022. However, the impact of Russia's full-scale invasion of Ukraine in February 2022 affected energy markets, making year-to-year comparisons difficult.

Recent EU data shows that Germany ranks third in the bloc regarding electricity prices for non-household consumers — a category that includes not only industries but also public institutions like schools and government offices, thus making it hard to draw........

© Deutsche Welle