More Expensive Power, Subsidized Gas: A Wake-up Call for Electrical Trades
Homeowner ponders over the conundrum: cheaper gas versus pricier electricity costs.
Stefan Ehinger, president of the Central Association of the Electrical and Electronic Industry, raises a red flag over the Black-Red coalition government's gas price subsidies in this candid conversation on ntv's podcast, "Klima-Labor." He fears that gas subsidies might roll back the energy transition and awaits the outcome of the government's plans with worry.
The Negro-Azul promise had initially seemed appealing: the government vowed to reduce electricity taxes for consumers to the European minimum. However, this promise has been forgotten, with Black-Red now planning to subsidize the gas price instead.
When asked whether he finds certain elements of the plans of Federal Minister of Economics Katarina Reiche and the Black-Red coalition alarming, Stefan Ehinger replies, "Some things are announced in ways that worry us." He notices that the topic of CO2 pricing has been pushed back since the COVID-19 pandemic, and to him, this is a source of concern.
The concern over CO2 pricing extends to the heating law, as everyone seems to be in a state of anticipation, waiting for speculation on its effects. Ehinger, however, believes that - provided the right market incentives are present - it is possible to invest in CO2-neutral technologies that offer long-term financial benefits.
Despite the challenges posed by the potentially burdensome CO2 prices for consumers with oil or gas heating, Ehinger insists that these prices fairly reflect the previously unaccounted-for environmental damage caused by energy carriers.
Even though many consumers have still chosen gas heating systems due to the "heating hammer" debate, Ehinger urges the need to address the issue and compensate for the costs of hardship cases. Skipping this step only delays the inevitable and leads to the market catching up quickly when the circumstances compel a sudden shift.
For the electrical trade, technology openness is essential in the race to meet climate goals. "Competition, yes, please - but fair," Ehinger states. "The market works better than bans," he adds.
Insights into the Heart of the Matter
Subsidizing Gas Prices vs. CO2 Taxation: The debate between subsidizing gas and implementing CO2 taxes centers on climate protection. CO2 taxes pass on the costs of fossil fuel use, making cleaner, renewable energy alternatives financially attractive, while gas subsidies promote continued dependence on fossil fuels.
Energy Transition and Environmental Concerns: With gas price subsidies and delayed CO2 taxation, environmental groups and electrical trades argue that progress toward a sustainable, climate-neutral energy system will suffer. Consequently, Germany would miss out on the economic opportunities associated with green jobs and the development of new technologies.
Power Beggary and Gauging the Energy Transition: Germany's energy policy could be attributed to "power begging," with some analysts asserting that the country relies too heavily on foreign energy sources and is not effectively transitioning away from fossil fuels. Factors such as subsidies given away from climate funds and delays in implementing CO2 taxes contribute to this perception.
The community policy discussions should emphasize the significant controversy surrounding subsidizing gas prices versus implementing CO2 taxes, as the former perpetuates reliance on fossil fuels while the latter encourages a shift towards renewable energy options. To counter the potential negative effects of high CO2 prices on consumers, the policy should aim to provide support for hardship cases and initiate vocational training programs for green and CO2-neutral technologies to foster economic growth and job creation.
