CSU leader Söder announces relief for private citizens regarding electricity tax, expected in 2027. - CSU leader Söder discusses electricity tax reduction for private individuals, scheduled for implementation in 2027
In a bid to alleviate the rising energy costs for private households, CSU Leader Markus Söder has proposed a reduction of the power tax to the European minimum level for all individuals, effective from the beginning of 2027. However, as of July 2025, Germany has not yet implemented this reduction, with the current tax cuts only applying to major industrial users and energy-intensive sectors.
The proposed reduction, which includes a reduction in network charges and an end to the gas surcharge, could potentially save a family of four between 100 and 150 euros annually. However, the black-red federal government has not agreed on an early reduction of the Power Tax for private individuals, prioritizing fiscal discipline and restricting tax relief to industry due to budgetary constraints.
Discussions about extending the cut to households and small businesses have been ongoing, especially after public outcry criticizing the exclusion of these groups. The CDU and SPD are exploring budget savings elsewhere to make broader tax cuts feasible, but Chancellor Friedrich Merz emphasized the need to carefully monitor the budget impact.
One potential area for budget savings could be through a reform of the citizens' allowance and a shift in migration policy, as suggested by Söder. However, the direct link between these reforms and the electricity tax reduction process remains unclear.
In a recent development, Söder has been discussing the Power Tax Reduction with the SPD in Munich. Despite strong pressure from the Union, the decisions made so far in the cabinet regarding the Power Tax have not changed. Söder continues to advocate for the reduction, emphasizing that there are already almost universal reliefs on energy costs.
In summary, while Germany has not yet implemented a reduction of the electricity tax for private households to the EU minimum level, discussions about potential relief measures are ongoing. The government's priority remains fiscal discipline, but efforts are being made to explore budget savings to make broader tax cuts feasible. The role of citizens' allowance reforms and migration policy in this context is yet to be fully clarified.
- Despite ongoing negotiations, Mr President, I am not here to discuss the matter of extending the electricity tax reduction to private households and small businesses at this moment, as it is still under consideration along with potential budget savings from reforming the citizens' allowance and a shift in migration policy.
- The ongoing decision-making about policy-and-legislation regarding the electricity tax and its potential reduction, as well as the discussions surrounding the role of politics in this process, are significant aspects of the general news in Germany at present.
