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Berlin Reneges on Promise to Cut Record-High Electricity Tax

  • After a week-long debate, Germany's coalition partners postponed electricity tax cuts for households and small businesses, limiting relief to industry due to unresolved financing as of Wednesday.
  • After long negotiations, Germany’s coalition rescinded electricity tax cuts for private homes due to a €5.4 billion 2026 cost and budget constraints.
  • Germany's electricity tax is 20 times the EU minimum, raising over €5 billion in 2024, with lobby group Andreae criticising the government for 'breaking a promise' to cut rates.
  • German households and small businesses face continued high electricity bills as coalition delays tax cuts, undermining trust and prompting criticism from industry and social groups.
  • Germany’s coalition plans to reduce grid fees and eliminate the gas levy by 2026, promising household relief within this timeframe.
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21 Articles

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1
Lean Left

The electricity tax reduction planned in the coalition agreement for private individuals is on ice. Chancellor Friedrich Merz justified this with lack of funds.

·Germany
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Lean Right

In Germany, we are discussing how the coalition deals with electoral promises – currently with regard to the reduction of electricity taxes. World author Stefan Aust analyses the situation. What is the chancellor's course to assess? And what about the SPD proposal as an AfD ban?

·Dortmund, Germany
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Center

Disappointment about the black-red Merz government! With the electricity tax not all are relieved. The criticism is loud.

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Center

Disappointment about the black-red Merz government! With the electricity tax not all are relieved. The criticism is loud.

·Germany
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epochtimes.de broke the news in on Wednesday, July 2, 2025.
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