FRANKFURT Nov 10 BASF chief
executive Kurt Bock said German jobs could be lost if the
chemicals giant has to start paying electricity grid fees to
shift the burden of funding a renewable energy infrastructure to
"If politicians burden us with such a fee, then there is a
danger that production will be transferred somewhere else," Bock
told German weekly magazine Der Spiegel. "We need to decide, do
we want to secure jobs or do we want a so-called fair burden
Bock said BASF should remain exempt from the Government's
proposal because the company had invested in its own power
stations, reducing its use of the electricity grid.
"If you're only driving your car on your own back yard, why
should you help pay for the national road network," Bock told
Without the grid exemption BASF would have additional costs
of 400 million euros ($533.98 million) running its Ludwigshafen
headquarters, Bock told the magazine.
"This sort of magnitude means that the competitiveness of
the location would be under threat," Bock told the paper.
Electricity is already twice as expensive in Germany as it is in
the U.S., Bock told the paper.
Since 2011, Germany exempted large chemicals, metals, glass
and building materials companies from paying electricity grid
fees as a way to help its industry remain competitive despite
having to put up with some of the highest power prices in
The European Commission however expressed concern this
exemption could amount to state aid, while a German court ruled
there was no legal basis for the special treatment.
Companies that use more than 8 gigawatt hours (GWh) of power
for at least 8,000 hours will from next year have to pay 10
percent of the grid fees. That will rise to 15 percent for those
using 7,500 hours and 20 percent for 7,000 hours.
Currently companies using more than 7,000 hours are completely
exempt, benefiting around 200 companies.
Germany's energy policy of exiting nuclear power generation
and investing heavily into renewables, which require government
subsidies to operate profitably, would cost Germany 150 to 350
billion euros ($446.42 billion) by 2030, German industry
association BDI said last year.
($1 = 0.7491 euros)
(Reporting by Edward Taylor; Editing by Elaine Hardcastle)