Prague – According to steelmakers, the Czech Republic should devise a plan to help steelworks with energy prices similar to what Germany is doing. Otherwise, there is a risk that Czech steelworks will cease to be competitive in the market. The Czech Steel Union informed about this in a press release. Germany will introduce a subsidized electricity tariff for industry starting January 2026. After problems at Liberty Ostrava, the only domestic producer of raw steel remaining is Třinec Ironworks. According to the Steel Union, they would pay about three to four billion CZK more annually on energy than German producers with subsidies.
According to German Chancellor Friedrich Merz, European steelmaking is troubled not only by American tariffs but also by the import of subsidized Chinese steel. Therefore, Germany supported a new plan to reduce the import quota for steel by 47 percent to 18.3 million tons per year. The tariff on supplies exceeding these quotas should also be increased to 50 percent from the current 25 percent. The German government then presented a plan to introduce a so-called industrial electricity price, which is intended to reduce energy costs for energy-intensive businesses, including foundries and steelmakers, starting January 2026. The goal is to maintain the price of electricity for industry at approximately 50 euros (about 1200 crowns) per megawatt-hour through direct support from the state budget totaling 6.5 billion euros (approximately 157 billion CZK).
“We understand the support from the German government as an effort to stabilize the industry during a time of high costs and uncertain energy policy. Without comparable conditions for the industry, Czech steelmaking will be unsustainable in the long term,” said Roman Heide, CEO of Třinec Ironworks. If the government does not come up with clear support, he warns that the production of raw steel from the Czech Republic may disappear. “This would mean a loss not only of jobs but also of part of our industrial self-sufficiency,” he said.
The Steel Union pointed out that Czech steel production is among the most energy-intensive sectors. Třinec Ironworks consumes approximately one terawatt-hour of electricity annually. While industrial energy prices in the Czech Republic are around 100 euros (approximately 2400 CZK) per megawatt-hour, in Germany, the industry will pay about half after the tariff is introduced.
The European Union, in the Clean Industrial Deal, allowed member states the option to adopt temporary national measures to support industry, including energy subsidies or investment incentives. According to Czech steelmakers, this has shifted the responsibility for industrial policy to the national level, allowing economically stronger states to better protect their businesses.
“The German industry will have energy approximately half as cheap as Czech businesses due to the new tariff. For such a closely interconnected region as Central Europe, this poses a systemic risk,” said Marcela Kubalová, chairwoman of the Steel Union’s board. (November 19)