Government streams path for aid to gasoline consumers - Government initiates aid program for gas consumers
The German government has faced criticism over its energy policies, with some arguing that it continues to subsidise fossil energies from the state budget. This controversy comes as the coalition government has not committed to a general reduction in electricity tax for all consumers, despite earlier promises [1][5].
Sepp Müller, deputy chairman of the Union faction, believes there is a savings potential of one percent in the federal budget through a broad-based reduction in electricity tax. However, the current situation is far from this, with the coalition focusing on funding backup gas-fired power plants through levies on electricity users [1].
These levies, known as surcharges, make up around 2.4 percent for household customers and around 5 percent for industrial customers of the gas price. The proposed surcharges would effectively increase costs rather than lower them, contradicting any expectation of a broad electricity tax cut for all consumers [1].
The federal government aims to provide relief for gas customers, and the reduction in network charges, a component of the electricity price, is also included in the relief measures. However, the reduction in electricity tax for industrial enterprises is the only reduction that has been made permanent from 2026 [1].
The coalition agreement between CDU, CSU, and SPD had announced a reduction in electricity tax for everyone, subject to financial constraints. Yet, the abolition of the gas storage surcharge, a significant part of the announced package of measures to relieve energy prices, has not been realised [1].
The Federal Ministry of Economics is involved in the decision-making process for energy price relief measures. The Climate and Transformation Fund (KTF) is also involved in financing the gas storage surcharge relief. The federal government plans to balance a surcharge account with 3.4 billion euros from the KTF by the end of 2025 [1].
The relief for a four-person household could be around 30 to 60 euros per year, depending on consumption. Despite this, representatives of the government factions in the Bundestag continue to push for a general reduction in electricity tax for all consumers. The cabinet wants to decide on an amendment to the Energy Industry Act today to provide relief [1].
Nina Scheer, SPD faction's spokesperson for energy policy, states that the coalition agreement still provides for an immediate, general reduction in electricity tax to the European minimum level. However, the federal government has justified not initially reducing the electricity tax for everyone with budgetary constraints and the priority of relieving industry to secure jobs [1].
In conclusion, while the German government has made efforts to provide relief for gas customers and industrial enterprises, it has not committed to a general reduction in electricity tax for all consumers as initially promised. The focus remains on funding backup gas plants through levies on electricity users, a move that has been met with criticism from environmental groups. The debate continues as representatives push for a broader reduction in electricity taxes.
- In the ongoing discussion about energy policies, the German government's focus on funding backup gas-fired power plants through levies on electricity users has drawn criticism, especially as it contradicts promises of a general reduction in electricity tax for all consumers.
- Despite the federal government's efforts to provide relief for gas customers and industrial enterprises, the lack of a commitment to a general reduction in electricity tax for all consumers is a significant point of contention in current political debates, with many calling for a broader reduction to align with the initial promises made in the coalition agreement.
