Energy giant RWE rejects Seehofer’s cost-reduction plan

Germany’s largest electricity provider RWE has rejected a plan by consumer protection minister Horst Seehofer to reduce energy costs.

Energy giant RWE rejects Seehofer's cost-reduction plan
An RWE plant near Rommerskirchen. Photo: DPA

“State-sanctioned price guidelines don’t get us anywhere,” RWE head Ulrich Jobs told German daily Bild on Monday.

Seehofer had said the government was reviewing a plan to adopt a standard electricity discount.

Jobs criticized government imposed taxes on electricity, but didn’t completely reject the possibility of discussing a future agreement. “Herr Seehofer shouldn’t forget that the state is among the biggest price inflators – a topic that should be discussed,” he said.

Soaring energy costs are of increasing concern in Germany, where RWE is set to raise energy costs by an average of 25 percent on September 1. The German Federal Statistical Office (Destatis) announced last week that household expenditure on heating, electricity, gas and fuel jumped 21 percent in the last year and a half.