Volkswagen: industrial electricity in Europe should cost under 7 cents per KWh

Volkswagen (VOWG_p.DE) Chief Executive Oliver Blume says electricity should be available for industry at less than 7 cents ($0.0756) per kilowatt hour for Europe to remain competitive, according to an interview released by Manager Magazin on Wednesday.

"But that is ultimately the responsibility of politics," Blume told the magazine.

The average electricity price for households in Germany in early 2023 was 48.12 cents per kilowatt hour, according to utilities association BDEW, falling to 13.3 cents for small and medium industry.

German economy minister Robert Habeck has proposed an industrial electricity tariff as renewable energy expands to keep Europe attractive as an investment location in contrast to the US and China, though details have not yet emerged.

Volkswagen has repeatedly called for more competitive prices in Europe and has said it is waiting to decide where to make its next battery investments on the continent until politicians offer more clarity on energy prices and subsidies going forward.