Germany rejects broader electricity tax cuts despite Green Party push
The German government has ruled out extending a planned electricity tax cut to all consumers, despite calls from the Green Party. The decision comes amid concerns over rising energy costs and tight budgets. Green Party spokesperson Michael Kellner had pushed for the reduction as a way to ease financial pressure on households.
Electricity prices for private households in Germany surged by 31.2% by mid-2022 compared to 2015 levels. However, state relief measures introduced by 2026—including scrapping the gas storage levy, subsidising grid fees with €6.5 billion, and lowering the electricity tax—helped households save around €160 per year on average. These steps, combined with the earlier suspension of the EEG levy, provided over €27 billion in total relief.
The coalition had already reduced the electricity tax for manufacturing and certain sectors to the EU minimum of 0.05 cents per kilowatt-hour from 2026. But the SPD, CDU, and CSU blocked extending this cut to all consumers, citing budget constraints. Kellner argued that lowering the tax would make electric vehicles and heat pumps more affordable, proposing it as an 'Easter relief measure.'
Finance State Secretary Michael Schrodi highlighted existing efforts to reduce energy costs. The Finance Ministry confirmed it was monitoring the situation but saw no need for further action at present.
The government's decision leaves the electricity tax unchanged for most consumers. Existing relief measures will remain in place, but no additional cuts are planned. Households will continue to rely on current subsidies and tax adjustments to manage energy expenses.
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