Appeal from Saxony's cities, municipalities and districts on the energy crisis

16.09.2022

We Saxon mayors, Lord Mayors and District Councillors are responsible for our municipalities, our residents and our local companies. We are extremely concerned about the uncertain supply situation and the enormous price increases in the energy sector as well as general inflation. Many private households with small and medium incomes and many companies of all sizes and from all sectors are approaching a situation that threatens their very existence. Large sections of society are facing an uncertain future. In view of the dramatic developments and out of concern for social peace in our country, we are making the following appeal to federal and state politicians:


1. Russia's criminal war of aggression against Ukraine is the cause of millions of suffering in Ukraine, the starting point of an unprecedented energy crisis in Europe and a food shortage in Africa and Asia. From the first day of the invasion, the Saxon municipalities stood by Ukraine in an exemplary manner and provided help and support. Even in seemingly hopeless situations, however, the path of diplomacy should not be abandoned. The Federal Republic of Germany must work towards negotiations between Ukraine and Russia. Peace in Europe must be the constant goal of German foreign policy. The war is likely to cause long-term economic and social damage throughout Europe, the extent of which will increase with the duration of the war. The sanctions must be based on the principle that their negative impact on the countries of the Western community must be less than the impact on Russia.


2. a comprehensive concept must be created at federal level to deal with the crisis situation, focussing on the economy and population as a whole. The erratic actions currently taking place to cushion individual groups of those affected cannot solve the actual problem, as this is a problem for society as a whole. Singling out individual groups of those affected will inevitably lead to further injustices.
Instead, government measures should be applied where the problem arises and can be effectively eliminated (e.g. market mechanisms or gas importers).


3. we share the population's lack of understanding that, on the one hand, citizens and businesses are being asked to pay a high price that in some cases jeopardises their existence and, at the same time, politicians are not exhausting all the possibilities for increasing the supply of energy. All energy sources must be utilised in order to overcome this deep crisis. This includes maintaining existing power plant capacities in the nuclear and coal sectors for as long as it is technically possible.
We are calling for a binding statement on the lifespan of coal-fired power plants in the Free State of Saxony in order to counteract the uncertainty created by the coalition agreement at federal level. The agreements of the coal compromise must be adhered to.
The expansion of renewable energies in the area of electricity and heat generation must be accelerated. In particular, the opportunities for the provision of heat from solar thermal energy, biogas utilisation, geothermal energy and industrial waste heat must be exploited to a greater extent.


4. energy must remain affordable. We are therefore calling for a gas and electricity price cap for all consumer groups for the foreseeable future. This would calm the market, dampen cost increases for citizens and businesses to a tolerable level and at the same time limit unjustified jumps in profits, for example by decoupling gas and electricity prices (effect of the merit order).
State levies on electricity, petrol and diesel should be reduced to the European minimum.

5. a concept is needed to support and relieve the economy, including municipal companies and public utilities. The necessary instruments must be available to bridge short-term economic distortions. Changes to insolvency law, such as an insolvency moratorium and state guarantees, including for municipal companies, are suitable measures here.


6 We understand all those who are concerned about the future of their families, their companies and our society. We expect the federal and state governments to communicate transparently about the current situation and short and medium-term developments. People must be openly informed about what to expect and what help they can expect from the state.


7 We local authorities are aware of our responsibility to organise social cohesion and the functioning of the local community, even in this difficult and universally stressful situation. We want to and will face up to this responsibility. However, in order to be able to do this effectively, we need an accompanying adjustment of the state legal framework and, in view of the threat of massive additional burdens on local authorities (energy and social costs as well as massive tax losses), financial support.


8. a crisis management concept is also required at state level, which must be coordinated with the two municipal state associations. Among other things, this concept must deal with possible supply disruptions for gas and electricity, the maintenance of critical infrastructure and the protection of vulnerable groups. Coordination by the highest disaster control authority is also required.

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