The Poor Get The Shaft – Forced To Pick Up 7 Billion Euro Power Tab Of German Industry!

Here’s more proof that Germany’s scheme to shift over to renewable energy sources, the so-called Energiewende, is backfiring – this time socially.

German climate alarmist site “Klimaretter” (Climate Rescuer) writes here that Germany’s Energiewende has been unfair to consumers, but a real bonanza for some large power consumers.

Claiming competition disadvantages (and they are indeed real) big power consumers have cajoled policymakers to grant them exemptions from having to pay the renewable energy feed-in surcharges – now at more than 6 euro-cents a kilowatt-hour. The result is that these have ended up being passed on to the poor consumers, who are forced to pick up the huge tab in addition to paying their own surcharge fees.

Klimaretter writes:

Energy-intensive companies in Germany were exempted from paying 3.3 billion euros in 2014 and 3.4 billion euros in 2015 within the scope of the EEG Renewable Energy Feed-In Act.”

That’s about 7 billion – over the past two years, only.

It is estimated that some 2000 German companies were granted exemptions from paying these feed-in charges. One green politician, Julia Verlinden, commented that the way things are now, large power consuming companies are being rewarded for consuming more power. She told klimaretter that “companies even receive incentives to waste as much energy as possible in order to profit from extra discounts.”

In fact Co2 emissions by the German aluminium industry has risen from 733,000 tonnes in 2010 to 821,000 tonnes in 2014, klimaretter reports.

Verlinden adds:

Small businesses, private households or public services have to pay for the gifts to industry.”

This is yet another way the Energiewende has become the largest bottom-to-top wealth redistribution in the history of the planet. Currently German consumers are being burdened with over 25 billion euros annually to subsidize the Energiewende. The big profiteers are banks, Big Wind & Solar, and wealthy land and property owners.

For the extra billions of euros annually, the poor consumers have content themselves with a few theoretical hundredths of a degree less climate warming by 2050.


10 responses to “The Poor Get The Shaft – Forced To Pick Up 7 Billion Euro Power Tab Of German Industry!”

  1. David Johnson

    And teh likes of Sod and his ilk couldn’t care less.

  2. John F. Hultquist

    The big profiteers are …

    … and some 2000 German companies.

    Not to imply that I approve of all this, but …
    Our retirement is partly supported by the profitability of companies, including some of the banks and companies involved. That’s because we own shares in broad international mutual funds – one bond fund has >56% allocation in Europe, and I suspect much of that is Germany. The particulars are of little interest.

    So while not approving of the process, we do acknowledge the support.

    1. yonason

      @John F. Hultquist

      On a related note, also not defending it…

      “if the Government had stuck the bill to big business, such businesses would have simply moved out to other countries with lower electric rates, taking jobs and tax revenue with them.”

      I.e., the poor get the shaft because govt., drones can not only solve real problems, but always only seem able to make the worse.

  3. tom0mason

    Like most Western governments, or even all modern governments, the are too large.
    Instead of making and enforcing the laws that govern the way business has to done in the markets, governments has become the funding gatekeeper either through direct subsidy, or handing out highly lucrative government contract, or using the ‘picking winner’ directly funding through crony capitalism.
    All this has ensured that governments, and not the ‘free market’ is in charge of business financing. Through these methods the government ‘take’ in the market has grown, through these methods taxation both direct and indirect have risen, through these methods the markets have slowed as a growing proportion of available funds are funneled through government entities. This has ensured that national debts and deficits has ballooned in direct proportion to the expanding government bureaucracies.

    The direct effect of this intervention is the slowing markets, removing the dynamism from the business arena. It also means that there is less money available to be spent by ordinary people. And as the government try and ‘fix’ this problem, they misguidedly go for lowering interest rates — borrowing from the next generation to fund the current stupidity. This stupidity is where most Western governments find themselves. They do not gain any education from seeing that the Japanese have tried an failed with never-ending ‘stimulation’ of the economy for decades through monetary policy.

    So what can be done?
    The first thing to understand is that the problem is not government or EU monetary policy but EU governments themselves and its short sighted financing policies. If interests rates must be dropped to close too, or at zero then this says “the tax base is too big!” It does not mean that there is not enough money in the system and we need to print more, it means the government as a proportion of all available funds, has too much money. There is more than enough money in the system, too much of it’s just in the wrong place — it’s in that hands of the state and the state subsidized crony capitalists.
    Western government must reduce in size and expenditure now! Governments, and the bloated EU, are too big, too slow, and too expensive hence your headline.

    If these government run programs, like Energiewende, have any merit they must be self financing, or if naturally loss-making, strongly curtailed. How much more taxpayer money must be squandered on these non-starter industries? Does Europe have to wait until the electrical grids are ruined and industries decimated before they see? Have they not proved themselves to be worthless by the fact that they still cannot survive without huge government and EU taxpayer largess.

    Surely it is rank criminal for EU governments to continually line the pocket of a few rich people in this manner, while unemployment and under-employment rises in the EU. What kind of EU is it for whom it is moral to leave 40% or more of the current employable generation poor, idle and without a future, and the next generation thrown on the scrapheap with an outlook of even less? Is this moral while paying fabulous amounts through schemes such as Energiewende?
    All for what? The global temperature may, or may not rise 1 or 2°C in 10, 20, 50, 100 years? But what if temperatures drop by 1°C or 2°C in 10, 20, 50, 100 years?
    If these policies are not criminal then it they are sick inhuman acts perpetrated by sick inhuman politicians.

  4. Curious George

    Modern Green movement is all about making the rich richer and the poor poorer. That’s why billionaires finance it.

    1. yonason

      No, no, no. They really and truly want to prevent the world from overheating. Why, just look at the data to see the terrible danger we’re in, here.

      Now don’t you feel bad that you were so hard on them? 🙂

      1. DirkH

        “No, no, no. They really and truly want to prevent the world from overheating.”

        Leo Di Caprio just invited his millionaire friends to a big shindig where he gave a rousing speech, urging them to save the planet.
        Where was it you ask? Why in St. Tropez so they all had to jet over from California.

        Two possibilities:
        -they’re as dumb as a box of bricks the lot of them and don’t know that jets burn Kerosin or what that is
        -they’re all having a big fat laugh at our expense while acting as if they mean it.

        Given they’re all actors I’d hazard a guess they’re just being payed by some Malthusian hedge fund billionaire like Soros or Grantham to have some free Caviar in Southern France, protected by anti terror units from the local Muslim population.

        1. yonason

          I imagine they just needed the right ambience to inspire them.

          “they’re all having a big fat laugh at our expense while acting as if they mean it.” – DirkH

          Oh, no, DirkH. Just look at this…
          “It has been reported that [Natalie] Portman’s engagement ring is eco-friendly. Apparently, the center stone on her engagement ring is antique mine-cut and the surrounding pavé diamonds are conflict-free. The ring is set in recycled platinum.”

          Recycled platinum?! Oh, the sacrifices they make for the planet! Sure, they’re serious all right!

          And just look at how she carries that book, “Lolita.” Why, it’s almost as if she intends to read it. Oh, yeah, she’s obviously an intellectual giant, and will soon be penning any number of ghost written treatises on topics of concern to us all, …after her caviar, champagne and her nap.

  5. ZThomm

    I agree with analysis by Tom Mason.

    While not exactly the same populations,the cost of this green scheme will have to be paid indirectly by consumers of the products of these companies, or directly by the individual energy consumers.

    Perhaps by raising the energy prices paid by small companies and individuals, Germans are made aware of the incredible cost of the scheme, whereas it would be hidden in the price of some goods otherwise.

  6. Billy

    This is just political spin to divert attention from the failure of green energy. The sole purpose of the program is to signal virtue. There is no other demonstrable benefit.
    The electorate sought a way of displaying righteousness by appearing to save the planet. The leaders complied with the Energiewende.

    There is no reason for industry to pay for this as industry did not ask to to virtue signal and the artificially high prices defeat competitiveness.
    The people who asked for this symbol of virtue should be the ones who pay for it.

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