Electricity tax: Government clocked reduction for everyone for the time being

For the time being, the tips from the Union and SPD have not reached an agreement on further reduction in electricity tax. As the coalition committee says in a result paper, further relief steps – especially for consumers and the entire economy – should follow as soon as “there are financial scope”. This means that this is postponed at an indefinite time.

On the other hand, there was a decision to expand the mother’s pension. This is to be implemented on January 1, 2027. If a technical implementation is only possible at a later point in time, the mother’s pension will be paid retrospectively, it says in the result paper.

The coalition committee confirmed the decisions of the cabinet last week. The cabinet had launched relief from January 1 with the network charges and the abolition of the gas storage levy for gas customers. With electricity tax, the reduction for industry, agriculture and forestry is to be “stabilized”.

The fact that electricity tax should not be reduced for everyone – contrary to the announcement in the coalition agreement, i.e. not for all companies and not for private households. Chancellor Friedrich Merz (CDU) and Federal Finance Minister Lars Klingbeil (SPD) had justified the decision with household constraints.

The key question is how a reduction in electricity tax can be financed for all companies and consumers – according to the Federal Ministry of Finance, this would cost around 5.4 billion euros in the coming year. To do this, the coalition would have to cut back on other projects.

Merz had promised a solution before the meeting. “If we can do more for private households, we will do that,” said the CDU leader in the ARD talk show “Maischberger”. This does not occur at first.

In the result paper, the Union and SPD calculate what the existing cabinet decision brings to relief. The network charges, part of the electricity price, are to be reduced and the gas storage levy for gas customers is to be abolished. Together with the further reduction of electricity tax for manufacturing companies, this is a relief of around 10 billion euros for consumers and the economy, it is said.

“With these coalition measures to reduce energy prices as the first step, all consumers, private households and families are already relieved of up to 3 cents per kilowatt hour (kWh),” says paper. For a family of four, this means a relief of up to 100 euros per year.

In the coalition agreement, the Union and the SPD have announced: “We want to relieve companies and consumers in Germany by at least five cents per kWh with a package of measures.”

The government had justified the decision on electricity tax by the fact that in view of the weakness weakness, relief for industry had priority to secure jobs.