The economic minister of Mecklenburg-Western Pomerania, Reinhard Meyer, warns of a slight increase in electricity prices from January 1, 2024, despite the current price drop. This forecast is a result of the traffic light coalition leaders' decision to cancel a planned billion-euro subsidy for grid fees, which are a component of the electricity price.
Meyer criticizes this move, claiming that it will further exacerbate the social and economic imbalance, leading to increased costs for households and companies. The coalitions, including the SPD, Greens, and Free Democrats (FDP), must now seek alternative methods to finance grid costs without the subsidy.
The budget ruling by the Federal Constitutional Court requires the Federal Government to dissolve the economic stabilization fund at the end of the year, preventing the coalition from financing the transmission grid costs. Additionally, the removal of the electricity price brake is expected to add to the burden.
Experts suggest several solutions for the Federal Government and individual states to mitigate the impact of rising electricity prices. These include utilizing revenues from the National Emissions Trading System, accelerating grid expansion approval processes, implementing Carbon Contracts for Difference, expanding hydrogen and CO2 infrastructure, reforming public investment policies, and leveraging EU state aid regulations.
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