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The FT reports that the German Minister wants to expand the number of companies eligible for electric relief.

The Financial Times, citing sources familiar with the plan, reported that German Economy Minister Katherina Riese would like to expand the availability of planned measures intended to lower the electricity costs for companies.

In the first half of this year, Germany’s ruling coalition consisting of conservatives and social democrats agreed to reduce electricity taxes to the European Minimum for all consumers.

The Finance Ministry's 2026 framework budget, which was introduced last month, limited the relief planned to the industry, agriculture, and forestry sectors, while excluding many consumers and companies, citing financial problems.

Reiche announced last month that Germany would be presenting a concrete idea for an industrial electric price concept before the summer holiday and was aiming to implement it by year's end.

According to the FT, Reiche is looking to increase from 350 to 2200 the number of eligible companies for electricity price subsidies. The paper said that people cited by it estimated the cost of the program at 4 billion euro ($4.7 billion). It would also fund up to 50% of the electricity costs for firms over a three-year period.

When asked for comment by the Economy Ministry, it said that under recently announced European Union regulations up to 2,200 "energy and trade intensive" companies may receive financial assistance to cover half of their electricity costs.

The statement added that "the (German) concept" is being developed, but declined to elaborate.

According to The FT, the scheme will aim to provide "quick and reliable" assistance to the glass, plastics, and chemical industries. These industries have "a wide-reaching effect on other sectors via the value chains". The FT reported that the ministry's scheme would aim to deliver "quick and reliable" aid to the chemical, glass and plastics industries which have "a far-reaching impact on other sectors through value chains".

(source: Reuters)