Energy prices: Merz defends controversial decision on electricity tax

Chancellor Friedrich Merz (CDU) defended the controversial decision on electricity tax. “If we could do more, we would do more, but we also have to have a look at the federal budget,” said Merz in a video that was spread on Instagram. The next generation must pay the debt. You go ahead in small steps. Merz continued that the electricity tax for consumers is not quite as much as you would have wanted.

Union and the SPD had agreed in the coalition agreement to reduce electricity tax for everyone to the European minimum size – including private consumers. The coalition had moved away from this and had justified it with household constraints. Finance Minister Lars Klingbeil (SPD) said in the Bundestag that everything that was in the coalition agreement was under financing reservation.

There was broad criticism of the decision not to reduce electricity tax for everyone – also from the Union. In the video, Merz said that the electricity costs fell to Ukraine to the level before the start of the Russian war of aggression. Nevertheless, the coalition continues to relieve – the smaller part for private consumers, the larger part for companies. It is about strengthening the tentative upswing.

The cabinet launched relief as of January 1, 2026 with the network charges, part of the electricity price. In addition, the gas storage levy for consumers is to be abolished. The lowering of electricity tax for industry, agriculture and forestry should be “stabilized”.