electricity prices
Lindner: The green electricity levy could be dropped sooner
The energy industry has called on the federal government to abolish the EEG surcharge as quickly as possible. Photo: Sina Schuldt/dpa
© dpa-infocom GmbH
The rising electricity prices have alarmed the federal government. Now there are indications that electricity customers will be relieved earlier, at least in the case of the EEG surcharge. That’s not enough for the industry.
For consumers in Germany, the green electricity levy could be eliminated earlier than previously planned. Federal Finance Minister Christian Lindner has now announced this.
“If the coalition agrees on this, then I would make it financially possible for the EEG surcharge to be dropped by the middle of the year,” the FDP politician told Der Spiegel magazine. “That would be billions in relief for families, pensioners, recipients of student loans or basic security and medium-sized businesses and crafts.”
According to the previous plans of the federal government made up of SPD, Greens and FDP, the EEG surcharge on the electricity bill is to be abolished on January 1, 2023. The levy to promote green electricity under the Renewable Energy Sources Act (EEG) will then be financed from the federal budget.
cross-party goal
“In view of the increased prices, I think an earlier abolition is necessary,” said Lindner. The goal is shared across parties. With a view to rising energy prices, he said: “We have a situation of scarcity, especially for gas, which is what drives inflation in Germany in particular. I think it is necessary for us to organize short-term relief.”
Economics and Climate Protection Minister Robert Habeck (Greens) said on Wednesday: “If it is possible to bring forward the abolition of the EEG surcharge, then that should be tried.” The abolition of the surcharge will only dampen the rise in energy prices. Further solutions must be found, which essentially lie in the expansion of renewable energies.
Industry President Siegfried Russwurm called Habeck’s measures for a faster energy transition “right, but they are not enough”. “I support the minister in addressing restrictions such as distance rules for wind turbines. But he is still not specific enough on the question of how we can ensure the energy supply when the renewables are not feeding in.”
Only possible with private investors
According to Russwurm, Germany must put around 100 billion euros a year, a total of 860 billion euros, into renewable energies and gas-fired power plants as an interim solution. The
will only succeed if private investors can also be won.
According to the President of the Federal Network Agency, Jochen Homann, the energy transition will become more expensive due to delays in the planning and approval of power lines. “The costs of securing the power supply will be higher than they should be. As long as the lines are missing, we need more interventions in the power plant park. In the end, these additional costs end up on the consumer’s electricity bill,” said Homann of the “Frankfurter Allgemeine Zeitung” (Monday).
It will “probably take longer” for the first north-south connections to be completed than the last year 2026, he added. “This will be discussed in a round of economics and energy ministers from the federal and state governments.”
Drastic price reduction required
Industry President Russwurm again demanded a drastic reduction in electricity prices. «There is an acute need for action in the burden of grid fees and the electricity tax. Therefore, these must be significantly reduced,” he told the Funke media group. With the abolition of the EEG surcharge alone, companies would not be able to achieve a globally competitive electricity price. He described an electricity price of four cents per kilowatt hour as sensible.
According to Russwurm, the German economy is not necessarily dependent on natural gas from the controversial Nord Stream 2 Baltic Sea pipeline. “Germany needs a secure energy supply. But it doesn’t depend on a single pipeline, not even on Nord Stream 2,” he said. Germany gets more than 50 percent of its gas from Russia. “It would certainly not be easy to replace this part completely or in large parts in the short term,” he added, referring to the Ukraine conflict.
Network agency boss Homann no longer expects Nord Stream 2 to be approved in the first half of 2022 in view of the pending tests. The required entry of the new German subsidiary in the commercial register has taken place, but “further steps are missing”.
According to data from the Federal Institute for Geosciences and Natural Resources (BGR), which the “Welt am Sonntag” reports on, the share of Russian natural gas deliveries in relation to German consumption was just over 50 percent in 2020. Russia had a share of 34 percent in German oil imports. 45 percent of the hard coal imports came from Russia.