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Market analysis··2 min read

SMEs demand immediate electricity price relief: Prospects for commercial real estate

The Bundesverband Kooperierender Mittelstand (BKM) is demanding an immediate reduction of the electricity tax for all companies to the European minimum level, as the relief measures hinted at by Federal Minister for Economic Affairs Katherina Reiche, which are only for the 2030s, do not address the current challenges faced by SMEs.

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SMEs demand immediate electricity price relief: Prospects for commercial real estate. Illustrative image generated using artificial intelligence (AI). The image does not depict a real property, person or event and is not a documentary photograph. Labelled in accordance with Article 50(4) of the EU AI Act.

The current debate surrounding energy prices in Germany significantly impacts the economic viability of small and medium-sized enterprises (SMEs) and, consequently, the attractiveness of commercial properties. Federal Minister for Economic Affairs Katherina Reiche forecasts noticeably lower electricity prices only for the 2030s, a perspective criticised by the Bundesverband Kooperierender Mittelstand (BKM) as insufficient. Many businesses have been contending with high energy costs, subdued demand, and increasing competitive pressure for years.

The BKM therefore urges the federal government to act immediately. Specifically, it proposes reducing the electricity tax for all companies to the European minimum level. Such a measure, according to the association, could be implemented swiftly, would not create additional bureaucracy, and would also benefit businesses excluded from selective subsidy programmes such as the industrial electricity price or electricity price compensation.

Günter Althaus, President of the BKM and CEO of Reformhaus eG, underscores the urgency of the situation. He stresses that SMEs cannot wait until the 2030s for affordable electricity. Businesses such as bakeries, trading companies, and service providers have to pay their electricity bills today. Althaus warns against using long-term reforms as an excuse for short-term inaction. To secure Germany's competitiveness as a business location, an immediate reduction of the electricity tax for all companies is necessary, rather than merely privileging individual sectors.

The current energy policy carries the risk of further exacerbating the economic imbalance. While selected industries are granted extensive and combinable relief, large parts of the cooperating SMEs remain without corresponding support. Althaus criticises that the current discussion focuses too heavily on industrial policy and neglects a comprehensive SME policy. In the area of electricity tax, for example, the manufacturing sector, agriculture, and forestry are relieved, while trade, crafts, and services are largely disregarded.

According to the BKM, industrial policy without a coherent SME policy is inadequate. He likens it to a house without supporting walls. To strengthen Germany as an economic hub, it is therefore essential to reduce the electricity tax for all companies to the European minimum level. The BKM calls on the federal government to implement the step announced in the coalition agreement as quickly as possible. A general reduction of the electricity tax to the European minimum for the entire economy would not only be fairer but would also lead to a reduction in bureaucratic hurdles, which is of considerable importance for the real estate market and its users.

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