Electricity Tax Cuts Gain Momentum Across Germany to Ease Energy Crisis

Energy ministers from Germany's federal states are calling for a reduction in electricity taxes for all consumers as a relief measure amid the ongoing energy crisis. There is broad agreement among the energy ministers that this step should be prioritized, said Christian Meyer (Greens), chair of the Energy Ministers' Conference from Lower Saxony, on Friday.

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However, Bavaria's Energy Minister Hubert Aiwanger (Free Voters) refused to endorse a joint resolution, which led the remaining 15 state representatives to adopt a joint declaration instead.

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Tax Relief Already on Federal Agenda

The reduction of the electricity tax had already been promised by the federal government, Meyer added. It would provide "rapid relief for consumers and businesses." Additionally, the federal government should examine further measures, such as a price cap on fuel, a windfall profit tax, or an increase in the commuter allowance. "Further measures must follow," Meyer said.

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There is consensus "that the electricity tax should be adjusted as quickly as possible," said Brandenburg's Energy Minister Martina Klement (CSU). "I personally find it very conceivable to temporarily increase the commuter allowance as well." Overall, however, policymakers should proceed "with caution" and "not fall into wild activism."

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Renewable Energy Expansion Remains Priority

Representatives from several states emphasized the importance of expanding renewable energies following the special consultations among energy ministers. "We want continued investment in the expansion and use of renewable energies, also for reasons of sovereignty and resilience," said Berlin's Energy Senator Franziska Giffey (SPD).

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"Germany transfers 80 billion euros abroad every year for the supply of fossil fuels," said Schleswig-Holstein's Energy Minister Tobias Goldschmidt (Greens). "This cannot and should not continue."

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Sharp Criticism of Federal Minister's Energy Policy

The Green politician sharply criticized Federal Economy Minister Katherina Reiche (CDU). Her energy policy is "completely out of touch with the times." The plans for the network package known so far are creating great uncertainty among investors in renewable energies, while at the same time the hydrogen ramp-up is not gaining momentum.

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