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5 Dec 2022 CEO Standpoint

CEO statement on energy price curbs

Energy transition Management Corporate Political Responsibility
President & CEO of the Wilo Group President & CEO of the Wilo Group

“Since the beginning of the Russian war of aggression in Ukraine, energy prices have been rising significantly. This not only affects the gas market, but also the electricity sector. Energy prices in Europe will no doubt also remain at a very high level in the medium term. The relief packages unveiled by EU member states so far, as well as the gas and electricity price curbs, are already eating up hundreds of billions of euros. These political measures are necessary at the moment, but they put a strain on state budgets or are managed in part outside of the budgets. Above all, the financial resources tied up in this way are lacking insofar as making critical infrastructure in Europe fit for the future.”

“The gas and electricity price curbs currently planned in Germany are fundamentally the right thing to do in order to protect the industrial base, small and medium-sized businesses and the large number of craft businesses from collapsing. The overriding goal should be not to put Germany's economic substance or sovereignty at risk through the possible death of entire economic sectors.”

Electricity meter displaying kWh

“However, the state interventions that are currently under discussion in relation to personnel, wage and salary policies, as well as dividend policies for such companies that take advantage of the energy price curbs, should be rejected. These interventions are counter-productive and make Germany a less attractive place for investors.”
“Although the disadvantages for investors resulting from the relatively high energy costs in Germany compared to non-European countries are temporarily mitigated by the energy price curbs, taking advantage of the ‘curbs’ is penalised with interference in entrepreneurial independence.”

“Investors therefore have the choice between very high energy costs in Germany or a blatant encroachment on their ownership rights! When in doubt, they will decide to invest in the USA or other countries in Asia, for example. Near-shoring of operational activities to secure critical infrastructure in Germany would also become less attractive!”

“Family businesses in particular will think twice about whether to take advantage of the energy price curbs. The preservation of the company's independence is very often an integral part of the corporate strategy here. This is the case with Wilo too!”

“We’re stepping up our efforts to save energy at Wilo's European sites more than ever before. We’re producing even more of our own green electricity and even green hydrogen at the Wilopark in Dortmund. Saving energy is the order of the day, especially for all European sites. This will not only strengthen the resilience of our group of companies and slow down climate change, it also frees up financial resources that can be used for our strategic investments and operational activities in Europe as well.”

“It’s important to accelerate the energy transition in Europe and support it with significantly enhanced energy efficiency measures. In the future, Europe and especially Germany will remain reliant on imported energy. When selecting import countries, the supplier risk must be diversified – only with functioning energy markets can Europe's economic sovereignty remain intact.”