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Government endorses electricity bill relief for consumers

Federal administration unveils significant energy policy initiatives, yet faces continued critique, predominantly concerning a specific decision.

Government grants electricity disconnection relief for customers
Government grants electricity disconnection relief for customers

Government endorses electricity bill relief for consumers

The German federal government has taken steps to provide relief for electricity customers, aiming to ease the financial burden that has been mounting due to rising energy costs.

According to reports, these measures could potentially save a family up to 100 euros a year in electricity costs, thanks to a reduction in network charges for all customers, including private households. This subsidy is intended to decrease network charges, providing tangible relief for consumers.

However, the news has not been met with universal approval. Economic associations have accused the government of breaking its word regarding the electricity tax reduction. Jörg Dittrich, President of the Central Association of the German Trade, considers the federal government's decision not to reduce the electricity tax for everyone as a "massive breach of trust."

Economics and Energy Minister Katherina Reiche (CDU) has countered these criticisms, stating that the measures are good news for electricity customers in Germany. She emphasizes that the relief is targeted towards households, aiming to make energy costs more affordable for the average family.

DGB board member Stefan Körzell, however, demands a reduction in the electricity tax for all consumers and a federal entry into the electricity transmission networks. He believes that such measures could further reduce electricity prices and provide more substantial relief.

The criticism remains that the electricity tax is not being reduced for everyone, despite the coalition agreement's promise. To address this, a permanent reduction in the electricity tax for businesses in the manufacturing sector and agriculture and forestry is planned.

The organization calling for a general reduction of the electricity tax is the "Wirtschaftsvereinigung der Grünen" (Economic Association of the Greens). They argue that such a move would provide equitable relief across all sectors.

Meanwhile, IG Metall demands an internationally competitive industrial electricity price for the energy-intensive industry. Without relief for this sector, thousands of jobs in the steel industry and other sectors could be permanently lost.

Significant regional differences are expected due to the network charge subsidy. While some areas may see a more substantial reduction in electricity costs, others may not experience the same level of relief.

The federal government plans to provide a subsidy of 6.5 billion euros for the operators of transmission networks next year. This subsidy will help ensure the effective implementation of the relief measures.

The plans still need to be approved by the Bundestag, Germany's federal parliament. If approved, these measures could represent a significant step towards alleviating the financial burden of rising energy costs for many German households.

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