Berlin: Electricity tax in sight due to prices


BERLIN (Reuters) – The German government could scrap a surcharge on electricity bills used to expand renewable energy as early as this year to ease the pressure of rising energy costs on millions of households, said Saturday the co-chairman of the Social Democratic Party (SPD), Lars Klingbeil.

The three ruling parties in Germany agreed in their coalition agreement presented in November to abolish the tax in question from January 1, 2023.

“We are now examining whether this can be taken forward,” said Lars Klingbeil on the sidelines of a meeting of the SPD, Chancellor Olaf Scholz’s party.

The surcharge has been reduced by 43% since January 1 but should still cost households 222 euros on average this year.

Lars Klingbeil said the government must do more to support consumers faced with soaring heating and lighting costs, prompting talks between the SPD and its coalition partners.

“I’m sure we will see results very quickly,” he added.

Some 4.2 million German households will see their electricity bills rise by an average of 63.7% this year, while 3.6 million will face a 62% jump in their gas bills, as suppliers pass on their customers record prices on wholesale markets, according to sector data.

Like many other countries, Germany has been in the grip of an energy crisis since the lifting of COVID-19 restrictions led to a jump in demand for natural gas, amid low supplies, which resulted in a price spike.

(Report Andreas Rinke, French version Benjamin Mallet)



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