Cabinet's Electricity Plan: Unraveling the Mystery of Electric Discharges
The German government has announced a comprehensive relief plan for electricity consumers, aiming to ease the burden of soaring energy costs over the next four years. Here's a breakdown of the key points:
- The government plans to provide a subsidy of 26 billion euros to alleviate cost burdens on electricity customers. This subsidy will benefit all companies and private households that consume electricity.
- The relief plan includes a reduction in electricity tax, which is intended to benefit potentially over 600,000 companies in the manufacturing sector, agriculture, and forestry, including manufacturing craft businesses. However, only a maximum of 15 percent of businesses in Germany will benefit from the reduction directly.
- The federal government also plans to reduce grid fees, a component of the electricity price, which will benefit private households. A family could be relieved by up to 100 euros per year in electricity costs, while on average, grid fees for household customers could decrease by up to 2.4 cents per kilowatt hour, or about 2 cents.
- The subsidy for transmission network charges does not reach all electricity customers equally. Regional network charges vary in height from region to region due to different cost structures and the age of the infrastructure.
- The federal government is also planning to provide a subsidy of 6.5 billion euros for transmission network operators in the coming year.
- The expansion of renewable energies also influences network charges due to costs for integration into the networks. The offshore network surcharge, another component of the electricity price, is aimed for significant subsidization in 2027, subject to EU Commission approval. This surcharge helps fund costs from the grid connection of offshore wind farms.
- Economic associations have long complained about high electricity prices in international comparison. The steel industry association, in particular, has criticized the lack of urgently needed planning security for energy-intensive companies and called for a reliable and long-term reduction in grid fees.
- The decision on electricity tax continues to face criticism. Marie-Christine Ostermann, President of the Family Entrepreneurs, accused the coalition of breaking its word, while Jörg Dittrich, Handwerk President, spoke of a "massive breach of trust".
- The relief plan, however, is not without controversy. Critics argue that the plan does not provide enough relief for private households, who are also struggling with high electricity prices.
- The German government's electricity relief plan seeks to address these concerns by reducing costs for both businesses and households, aiming to foster a more competitive and sustainable energy market in the long run.
