German Finance Minister backs early end to green energy levy
Reuters
Published Jan 30, 2022 05:42AM ET
Updated Jan 30, 2022 07:15AM ET
BERLIN (Reuters) -Germany may scrap a levy on electricity bills that is used to support renewable power from the second half of the year, to ease the strain of rising energy costs on households, Finance Minister Christian Lindner was quoted as saying on Sunday.
Germany's three ruling parties had planned to abolish the EEG surcharge on electricity bills from Jan. 1, 2023, but Chancellor Olaf Scholz may have to act sooner given the surge in costs.
Energy prices in Germany in December were up 69% compared with December 2020. Any military action in Ukraine by gas supplier Russia would be likely to push them even higher.
"If the coalition agrees on it, I would make it financially viable and the EEG surcharge would be removed mid-year," Lindner was quoted as saying by Der Spiegel magazine. "This would equate to billions in relief for families, pensioners and people on social benefits, as well as medium and small companies and craftspeople."
The surcharge was cut by 43% from Jan. 1 but is still expected to cost households an average 222 euros ($247.37) this year.
Earlier this month, the co-leader of Germany's Social Democrat (SPD) party said the charge https://www.reuters.com/world/europe/germany-mulls-scrapping-energy-bill-surcharge-early-prices-rise-2022-01-22 may be scrapped altogether this year. Scholz's SPD govern with Lindner's pro-business Free Democrats (FDP) and the ecologist Greens.
A Finance Ministry spokeswoman said on Sunday she couldn't give any details about how talks between the three parties on scrapping the levy were progressing.
Some 4.2 million German households will see their electricity bills rise by an average 63.7% this year while 3.6 million face gas bills 62.3% higher than in 2021 as suppliers pass on record wholesale costs, industry data suggests.
($1 = 0.8974 euros)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.