Electricity tax: government postponed reduction for everyone for the time being

For the time being, this should not be reduced as much for consumers as originally promised. The leaders from Union and SPD did not achieve a corresponding agreement at their second meeting in the coalition committee.

In the coalition agreement, Schwarz-Rot had promised: “For quick relief by at least five cents per kWh (kilowatt hour), we will reduce electricity tax for everyone as quickly as possible and reduce the transfer network charges for everyone.” The chairwoman of the Social Association of Germany (SOVD), Michaela Engelmeier, spoke of a “fatal signal” after the top meeting in the Chancellery.

Engelmeier criticized that the coalition initially only wants to reduce electricity tax for industry, but not also for consumers. “You need noticeable relief, especially in times of high living costs,” said Engelmeier from the dpa news agency.

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.