Lobby for energy sector advocates strongly for substantial budget allotment to support reduced electricity costs
Electricity Price Relief: A Demand for Budget Financing
The energy industry lobby group, BDEW, is putting pressure on the German government to fund the forthcoming electricity price relief from the national budget, rather than the Climate and Transformation Fund (KTF). BDEW CEO Kerstin Andreae made this demand during the annual industry congress in Berlin.
"When we're talking billions in electricity price relief, it's only fair that it comes from the national coffers," Andreae asserted Wednesday. The association supports the reduction of electricity taxes, aid to industries, and alleviating electricity prices. However, to ensure long-term investment security, annual reductions in funding should be avoided.
Federal Minister of Economics and CDU politician Katherina Reiche is expected at the congress, where she plans to discuss the reduction of electricity taxes and network charges. However, the sources of funding for these measures remain unclear at present.
The government's proposed electricity price relief, part of Chancellor Friedrich Merz's strategy to revitalize Germany's industrial sector, is expected to cost around €10 billion by 2030[2]. Implementing this plan under EU state aid law presents significant challenges, necessitating cooperation with the European Commission[1][2].
The success of this plan depends on negotiations with the European Commission and potential adjustments to EU state aid rules[1][2]. These discussions and potential legal changes may influence the final funding sources for the electricity price relief. Stay tuned for updates on this developing situation.
[1] - "Germany's electricity price relief faces legal challenges under EU state aid rules", Reuters, [Link to article][2] - "Germany's electricity price relief: decarbonization, industry competitiveness, and state aid", International Institute for Sustainable Development, [Link to article][3] - "Germany plans €10 billion electricity price relief for industries by 2030", Euractiv, [Link to article]
The energy industry, specifically BDEW, is advocating for the national budget to finance the forthcoming electricity price relief, as opposed to the Climate and Transformation Fund (KTF), due to the significant amount involved. Federal Minister of Economics Katherine Reiche's plan to discuss electricity tax reductions and network charges at the industry congress leaves the sources of funding for these measures uncertain.
