Government greenlights electricity bill relief for consumers

The German federal government has initiated relief measures for electricity customers, aiming to provide tangible relief and prevent job losses in various sectors. Economics and Energy Minister Katherina Reiche (CDU) described these measures as good news for electricity customers in Germany.

Next year, the federal government plans to provide a subsidy of 6.5 billion euros to transmission network operators. This subsidy is intended to decrease network charges, a component of the electricity price, for private households. The relief for businesses in the manufacturing sector and agriculture and forestry will be made permanent in the form of a reduction in the electricity tax.

Significant regional differences are expected due to the subsidy. Without this relief, thousands of jobs in the steel industry and other sectors could be lost permanently. The German federal government hopes these measures will save families up to 100 euros annually on electricity bills.

Jörg Dittrich, President of the Central Association of German Crafts, criticized the federal government's decision not to reduce the electricity tax for everyone, calling it a "massive breach of trust." Business associations have accused the German government of breaking its word regarding the electricity tax reduction. The organization demanding the reduction of the electricity tax for all customers is the German Association of Local Utilities (VKU).

DGB board member Stefan Körzell stated that the network charge subsidy would reduce electricity prices but added that a reduction in the electricity tax for all consumers is also needed. IG Metall union called for a competitively priced industrial electricity price for energy-intensive industries to be introduced quickly.

Körzell also demanded federal involvement in the electricity transmission networks. The federal government's move comes amid growing concerns about the impact of rising electricity prices on businesses and households. Despite the coalition agreement, there is criticism that the electricity tax is not being reduced for everyone.

The relief measures do not apply to the electricity tax reduction for all sectors. However, the government's decision to make the relief for businesses in the manufacturing sector and agriculture and forestry permanent indicates a commitment to supporting these industries.

Private households in Germany are expected to benefit from a reduction in network charges. The federal government's relief measures are part of a broader strategy to address the ongoing energy crisis and support the German economy.