No relief from electricity taxes for consumers: despite pledges in the coalition agreement.
Headline: "Broken Promise on Electricity Tax Cuts: Chaos in Germany's New Government"
In a surprising turn of events, the newly installed coalition government between the Union (CDU/CSU) and SPD, is facing a severe backlash, barely two months into their tenure. The promise of reducing electricity tax for everyone, as pledged in the coalition agreement, is yet to see the light of day.
The Culprit Behind the DelayFinance Minister Lars Klingbeil (SPD), announced multi-billion-euro relief for energy prices in his draft budget, set to take effect from January 1, 2026. However, much to the chagrin of the opposition and public, the draft budget neglected the coalition agreement's commitment to reducing electricity taxes for consumers. The federal government's decision to focus instead on taking a larger share of network expansion costs has sparked heavy criticism.
Key Components of the Draft BudgetThe draft budget does include relieving consumers from gas storage surcharge costs and reducing network charges, but the lack of an electricity tax reduction for everyone is a significant cause for concern. The draft budget does confirm the permanent reduction of electricity tax for industry, agriculture, and forestry, with energy-intensive companies already enjoying full exemption. For companies in the manufacturing sector, the reduction in electricity tax will reach the EU minimum next year, with the same applying to medium-sized firms, according to a spokesperson for Klingbeil.
A Chance Missed and a Promise BrokenThe coalition agreement calls for companies and consumers to be permanently relieved by at least five cents per kilowatt hour. However, Finance Minister Klingbeil has stated that only a relief of two to three cents can be achieved currently, citing financial feasibility concerns.
Political Fallout and OutcryThe failure to honor the coalition agreement had led to sharp criticism, with Green energy politicians accusing the government of leaving consumers in the lurch. There are allegations of election deception and voter fraud, reemerging not for the first time. The loosening of the debt brake, even before the government's inauguration, has further intensified the backlash.
Quote:
- "It's sheer madness: They serve @FriedrichMerz and @LarsKlingbeil the money for relieving people on a silver platter, and then, everything happens except the much-heralded reduction in electricity tax for everyone. The broken promise becomes the only constant." – Anonymous source on X platform.
[1] https://www.bundesregierung.de/breg-de/aktuelles/regierungskoalition-2025-starke-deutschlandtreibende-koalitionsvereinbarung-1084768[2] https://www.welt.de/politik/deutschland/plus165771066/Elektrizitaetssteuer-Zugklopfen-ist-versprechenloses-Wahlversprechen.html[3] https://www.spiegel.de/politik/gesellschaft/ Bundestagswahl-2025-bundestagswahlkampf-spd-koalitionsverhandlungen-a-128776997.html
- Despite the promise in the coalition agreement to permanently relieve consumers and companies by at least five cents per kilowatt hour on electricity taxes, Finance Minister Lars Klingbeil announced that only a relief of two to three cents can be achieved,Leading to criticism and allegations of election deception and voter fraud.
- The draft budget, while including relief for gas storage surcharge costs and reducing network charges, does not include the commitment to reducing electricity taxes for consumers, as stipulated in the coalition agreement, sparking heavy criticism and concerns about a broken promise.
