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German politicians promise to reduce the price of electricity

German politicians promise to reduce the price of electricity

German politicians promise to reduce the price of electricity

Germany’s Finance Minister and Economic Affairs Minister have both reiterated their promise to drive down the cost of energy in Germany. One popular way to achieve this is the abolishment of the EEG surcharge.

Politicians call for lower electricity prices

Peter Altmaier (CDU), Germany’s Federal Minister for Economics, and Olaf Scholz (SPD), Germany’s Finance Minister, have promised to relieve citizens of the significantly high prices they pay for energy in their homes. Both ministers alluded to the abolishment of the EEG surcharge, an extra levy that contributes to the switchover to greener electricity sources.

The levy is a significant part of a household’s electricity bill. It has recently been capped by the federal government, subsidised by taxpayers’ money, and amounts to 6,5 cents per kilowatt-hour in 2021, which will drop to 6 cents per kilowatt-hour in 2022.

"We have to be very careful that there are no social imbalances in the implementation of our climate goals," said Altmaier. "In the city, for example, it is much easier to use public transport than in rural regions, where many people depend on their cars." Altmaier went on to say that commuters and pensioners were usually the most reliant on social infrastructure. “It's not about less climate protection, but about more climate protection combined with more social equality. The abolition of the EEG surcharge can be a first step,” he said.

Scholz echoed Altmaier’s sentiment: "The price of electricity has to fall because it should be attractive to switch to clean electricity," he said. “We want the surcharge for renewable energies no longer to increase the price of electricity as it is today. A family would then save over 300 euros a year. "

Abolishing the EEG surcharge

Rising electricity prices and the unpopularity of the EEG surcharge has no doubt played a part in why every major political party has pledged to either abolish or limit the surcharge in their manifestos in the run-up to September's federal election.

However, with electricity prices rising significantly in recent years, it is still unsure whether the tax on CO2 emissions in Germany will make up the income lost from abolishing or limiting the EEG surcharge.

William Nehra

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William Nehra

William studied a masters in Classics at the University of Amsterdam. He is a big fan of Ancient History and football, particularly his beloved Watford FC.

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