After much discussion on the issue, the federal government has finally decided to scrap the EEG surcharge on the price of electricity in Germany from July 1, 2022, in a bid to relieve consumers from soaring energy prices. 

Germany to scrap EEG surcharge in July 2022

Amid the ongoing energy crisis, the federal government is scaling up attempts to protect consumers in Germany from rising utility bills. Originally, the government had planned to only half the EEG surcharge - an additional tax charged on the price of electricity to fund renewable energy - in 2022. 

Then, it was announced that the surcharge would actually be scrapped entirely to further relieve consumers. The end date was originally slated to be early 2023, but in light of the energy crisis, the government opted to bring this forward to mid-2022. A date has now finally been set for July 1, 2022. 

Savings will be passed directly onto consumers

According to a new draft law that has been approved by the cabinet, from July 1, 2022, the transmission system operators (TSO) will reduce the EEG surcharge from the previous 3,72 cents per kilowatt hour to zero. The shortfall in revenue will be made up with funds from the federal government’s special “Energy and Climate Fund.” 

The government wants to ensure that the savings are passed directly onto consumers and not absorbed by energy companies. It will therefore make an amendment to the Energy Industry Act to legally ensure that electricity suppliers are obliged to reduce their prices to reflect the scrapping of the EEG surcharge. 

A draft law has been waved through by the cabinet and will face the Bundestag in the coming months. The approval of the Bundesrat is not required.