The explosion in electricity prices is also a major concern for the mechanical and plant engineering sector, as are the acute problems in procuring new energy contracts.
The drastic price increases in the energy sector are also placing a heavy burden on companies in the mechanical and plant engineering sector. High uncertainty and extreme price spikes on the spot and forward markets are causing utilities to act in an extremely risk-averse manner.
«The situation with new contracts in the energy sector is causing great concern. Numerous companies are experiencing acute problems in being offered or being able to conclude new energy contracts for electricity and gas. Some medium-sized mechanical engineering companies are thus exposed to incalculable risks outside their core business,» comments VDMA President Karl Haeusgen. Unlike in the private customer sector, there is no mandatory basic supply by an energy provider for companies.
In principle, price caps are alien to a market economy; high price peaks are an incentive to invest in power plants for peak loads. However, price caps are a temporary instrument when a market has been thrown into disarray by speculators and external shocks, which is currently the case.
«In the current crisis situation, there is a need for a temporary electricity price cap,» the VDMA president commented. The VDMA sees the need for a new, European electricity market design as urgent and important – but the rule here is thoroughness before speed.