Union's Critique of Electricity Prices Deemed "Inappropriate" by SPD Deputy - Energy regulation authority empowered to intervene in energy sector by Commission's proposed mandate.
In response to the Union's criticism of Finance Minister Lars Klingbeil (SPD) and the government's power price plans, SPD Vice Anke Rehlinger has voiced her disapproval. "I don't think that's a collaborative way to work within a government like this," said the Minister President of Saarland on ZDF's "Morning Magazine". "This is an agreement that's been reached between the coalition partners, agreed upon between the Minister of Economics and the Chancellor."
Wüst argued that Klingbeil's budget planning doesn't account for a general reduction in the power tax and warned of a breach of the coalition agreement. Similarly, CDU General Secretary Carsten Linnemann demanded in the "Bild" newspaper that the reduction of the power tax for all should be implemented. According to Klingbeil's draft budget, an initial reduction of the power tax for all to the European minimum level, as promised in the coalition agreement, is not on the table. A spokesperson for Klingbeil attributed this to budget limitations. Private households will reportedly be relieved from the gas storage surcharge as well as network charges.
Rehlinger added that calling for deviations from the agreed path and presenting it as a "one-man-show by the Finance Minister" is misleading. Moreover, she believes this approach shouldn't be the norm for this grand coalition. If the coalition wants to thrive—and this government must—it shouldn't continue down this path. The SPD won't tolerate this.
It's worth noting that the current controversy revolves around Klingbeil's plan for selective electricity tax reductions. The proposal primarily benefits industrial companies and specific sectors like agriculture and forestry, while neglecting households and smaller businesses. This approach contradicts earlier coalition commitments to reduce electricity prices "for all" by at least five cents per kilowatt hour, using CO2 price revenues to lower electricity taxes to the European minimum level[2][5].
The coalition's internal disputes over electricity pricing have led to criticism and mistrust, particularly due to the selective tax cuts not fully aligning with the coalition agreement. However, the government's focus on supporting industrial decarbonization and the complicated fiscal landscape pose significant challenges[2][3].
The high electricity prices in Germany, averaging nearly 40 euro cents per kilowatt hour with taxes accounting for approximately a third of the price, have sparked widespread dissatisfaction and political pressure. The ongoing debate around electricity pricing and the coalition's ability to balance budgetary constraints with earlier promises will continue to be a key topic of concern as the government moves forward[5][3].
- The SPD's Vice, Anke Rehlinger, commented on the Union's criticism of the government's power price plans, stating that deviations from the agreed path, presented as a "one-man-show by the Finance Minister," is misleading and not conducive to the collaboration necessary within the coalition government.
- The controversy surrounding Klingbeil's selective electricity tax reductions plan highlights the challenges faced by the government in balancing its common agricultural policy, common organization of the market, business, politics, and general-news agendas, as the proposed tax cuts primarily benefit industrial companies and specific sectors, while households and smaller businesses are overlooked, contravening earlier coalition commitments to reduce electricity prices "for all."
