Government initiates assistance for home gas consumers facing high electricity costs
In the ongoing efforts to alleviate soaring energy prices, the German government has announced a series of relief measures. However, a general reduction in electricity tax for all consumers beyond the relief measures targeted at industrial businesses remains uncertain.
The federal government's focus has been predominantly on supporting industry, with initiatives such as aid for renewable infrastructure and incentives for corporate electric vehicle purchases. The broad consumer electricity tax cuts, on the other hand, have been postponed or are absent from immediate financial planning.
There is a planned abolition of the gas storage surcharge, which currently accounts for around 2.4 percent of the gas price for household customers and around 5 percent for large customers. This relief measure is part of a broader package to reduce energy prices, which also includes a reduction in network charges for electricity. The government aims to balance a surcharge account with 3.4 billion euros from the Climate and Transformation Fund (KTF) by the end of 2025 to finance this abolition.
For a four-person household with average consumption, the surcharge amounts to around 30 to 60 euros per year.
The federal budget has a savings potential of one percent, according to Union faction deputy Sepp Müller. Despite budget constraints, the government has justified not initially reducing the electricity tax for everyone due to the priority of relieving industry to secure jobs.
The coalition agreement still provides for an immediate, general reduction in electricity tax to the European minimum level, according to SPD faction energy policy spokeswoman Nina Scheer. However, this reduction is subject to financial conditions and is not yet included in the draft budgets for 2025.
Representatives of the governing factions in the Bundestag continue to push for a general reduction in electricity tax for all consumers. Union faction deputy Sepp Müller stated that a broad-based reduction in electricity tax remains possible in the federal budget.
In a significant move, the cabinet is set to decide on an amendment to the Energy Industry Act today. The reduction in electricity tax for industrial businesses will be made permanent from 2026.
There is criticism that the costs are being financed from the KTF, with the Greens being among the critics as it means fossil energies are being subsidized from the state budget. This has led to concerns about new surcharges for all electricity consumers to finance backup gas power plants, potentially increasing overall electricity costs.
In summary, while industrial electricity tax relief exists, a general reduction in electricity tax for all consumers is not part of present fiscal plans and remains uncertain. The government's focus remains on industry, with relief measures primarily directed towards securing jobs and supporting the transition to renewable energy sources.
Financing for the planned abolition of the gas storage surcharge is expected to come from the Climate and Transformation Fund (KTF), which could result in new surcharges for all electricity consumers to finance backup gas power plants. Despite the priority given to industrial businesses in reducing electricity taxes to secure jobs, a broad-based reduction in electricity tax for all consumers remains a topic of discussion in the federal budget.
