Bremen advocates for reducing electricity taxes for everyone
In a significant move aimed at alleviating the burden of rising electricity prices, the finance ministers from Bremen, Lower Saxony, Schleswig-Holstein, and Baden-Württemberg have proposed a joint initiative to reduce the electricity tax across all sectors, including private households, businesses, crafts, and retail.
According to Finance Senator Björn Fecker, who has been a vocal advocate for the initiative, the proposed reduction in electricity tax is seen as compensation for increasing CO2 pricing. The reduction is intended for immediate implementation and is expected to make the switch to heat pumps more attractive, thereby promoting climate protection.
Currently, the electricity tax stands at 12.5 cents per kilowatt hour for private households, a figure that is proposed to be reduced to 0.1 cent. For businesses, the tax is 2.05 cents per kilowatt hour, with a proposed reduction to 0.05 cents. However, it's important to note that the electricity tax cannot be completely abolished due to EU directives.
Fecker has emphasized the urgency of relief from electricity prices for companies, including crafts and services, and has advocated for improvements to the electricity tax reduction. He is pleased with the broad support received in the Federal Council for this initiative.
While the federal government's plan currently focuses on reducing the electricity tax only for industry and agriculture, Fecker believes that consumers should not be excluded from the tax reduction benefits. In line with this, the proposed reduction is designed to apply to all sectors of the economy.
As of mid to late July 2025, no official update or formal progress on this specific joint electricity tax reduction initiative can be confirmed, as recent sources do not mention such a proposal or any related legislative development.
Fecker has expressed his satisfaction with the support received for the initiative, stating that a comprehensive electricity tax reduction incentivizes electrification, which is beneficial for climate protection. The success of this joint initiative could pave the way for a more sustainable and affordable energy future in Germany.
- The proposed electricity tax reduction, aimed at reducing the burden on businesses and households, is seen as a compensation for increasing CO2 pricing in the context of climate change and environmental science.
- The finance ministers' plan, which includes a reduction of the electricity tax for all sectors including businesses, crafts, and retail, is intended to make the switch to heat pumps more attractive, promoting climate protection and sustainability.
- In his advocacy for the electricity tax reduction initiative, Finance Senator Björn Fecker highlights the importance of including consumers, as the success of the project could lead to a more affordable and sustainable energy future in businesses and households alike.
