Germany mulls bringing forward EEG-surcharge phaseout amid high energy prices

Germany mulls bringing forward EEG-surcharge phaseout amid high energy prices

Germany’s EEG surcharge (EEG-Umlage) was due to be phased out in 2023 at the earliest, but against a backdrop of rapidly-rising energy prices, the federal government is considering bringing forward the reform. 

EEG-Umlage could be scrapped sooner rather than later

In a bid to relieve consumers, who are battling with spiralling costs for energy in Germany, the ruling parties of the traffic light coalition are mulling the possibility of scrapping the EEG surcharge - a tax on the price of electricity used to fund the expansion of green energy systems in the federal republic - sooner than originally planned. 

FDP parliamentary group leader Christian Dürr told dpa that the coalition partners wanted to get the measure off the ground as soon as possible, with discussions pencilled in to take place over the next couple of weeks. “The high tax burden and rising inflation are increasingly becoming a problem for consumers,” he explained. 

His fellow FDP party member Lukas Köhler added, “In the current tense situation, the abolition of the EEG surcharge would represent quick and unbureaucratic help that would reach people and companies quickly… We in the traffic light coalition are determined not to leave people alone with the problem of rising energy costs.” 

Move should save households in Germany 300 euros per year

In their coalition agreement, the SPD, Green and FDP parties had previously agreed to phase out the EEG surcharge from January 1, 2023, to move the burden of funding the green energy switchover from individual consumers to the federal government. According to Economics Minister Robert Habeck, the move should save the average household around 300 euros per year. 

The government is also promising further financial relief to help those struggling with rising utility bills. Finance Minister Christian Lindner has already set aside the necessary funds to provide all recipients of housing benefit in Germany with a heating cost subsidy. 



Abi Carter

Managing Editor at IamExpat Media. Abi studied German and History at the University of Manchester and has since lived in Berlin, Hamburg and Utrecht, working since 2017 as a writer,...

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