BERLIN, Jan. 22 (Xinhua) -- Three major German industry associations are warning that an "accelerated reduction" of coal electricity would create additional cost between 14 billion and 54 billion euros (15.9 to 61.31 billion U.S. dollars), according to a study jointly presented here Tuesday.
The expected cost would mainly result from increasing electricity prices which would "hit both companies and private households", according to the German industry associations BDI, DIHK and BDA.
The associations are now demanding that the government would react to rising electricity prices with "fixated electricity price reliefs for consumers".
"Without compensation for our companies, this politically driven increase in electricity prices would cause the worst damage to Germany as a business location," said Dieter Kempf, president of the Federation of German Industries (BDI).
According to the study, the large range of additional electricity prices is reflecting high uncertainty in the future development of raw material prices for energy production.
The German industry is concerned that the coal-commission, which was established to schedule the country's phase-out of coal, could establish a rigid shutdown plan for coal-fired power plants that would "expose the German economy to a massive risk".
Eric Schweitzer, president of the Association of German Chambers of Commerce and Industries (DIHK), is pleading for clearly defined "checkpoints" in the future.
"Power plants must not be closed until the conditions for competitive electricity prices, secure supplies and successful structural change are in place," said Schweitzer.
Electricity prices in Germany are among the highest in the European Union. Germany's industry is "demanding a subsidy from the federal budget of at least two billion euros per year for grid fees", arguing that this measure would absorb the increase in electricity prices for industrial companies, SMEs and private households.
Steffen Kampeter, managing director Confederation of the German Employers' Associations (BDA) concluded that "a hasty exit from coal-fired power generation must be ruled out, otherwise prosperity and jobs will be endangered".
