Criticism of electricity tax reduction: Bremen crafts feel disadvantaged!

Criticism of electricity tax reduction: Bremen crafts feel disadvantaged!

The discussion about the new electricity tax cut in Germany is causing a great stir, especially in Bremen. The Chamber of Crafts criticizes the fact that energy-intensive companies cannot benefit from the planned relief. Instead, the reduction in electricity tax is mainly focused on industry, agriculture and forestry. This is met with massive resentment because the chamber sees the exceptions as counterproductive. A general reduction could have acted as a positive signal, writes butenunbinnen.de.

Numerous craft sectors are particularly affected, such as textile cleaning in Bremen, which is left empty-handed. In the coalition agreement, the CDU, CSU and SPD originally promised to reduce electricity taxes for everyone, including private households. But the cabinet has now decided to limit this relief to selected sectors only. A spokesman for the SPD cites budgetary constraints as the reason and suggests that private households should receive additional relief in terms of the gas storage levy and network fees.

Details on the electricity tax reduction

The federal government has agreed to reduce the price of electricity for energy-intensive companies. In the future, the electricity tax for the manufacturing sector is to be reduced to the European minimum of 0.05 cents per kilowatt hour, which could result in significant financial relief. The price is currently around 2 cents per kWh. This reduction is planned for 2024 and 2025 and could even be extended until 2028 if funding can be clarified in the federal budget, reports tagesschau.de.

The total relief amounts to an estimated 2.75 billion euros, although the total savings for 2024 could add up to 12 billion euros. This is particularly relevant for around 350 companies that compete internationally and need support to achieve the kilowatt price of six cents. The discussion about electricity prices in Germany is explosive, especially since they are significantly higher compared to other European countries and the USA.

Forecasts and measurements

If you look at the year 2023, the federal government recorded a tax shortfall of around 1.375 billion euros due to the electricity tax peak equalization. The relief effect varies depending on the company, with additional savings of at least around 1 euro per megawatt hour expected. Smaller companies can also apply for tax relief under Section 9b StromStG if their electricity consumption exceeds a certain limit, such as bundestag.de reported.

The Bremen Chamber of Employees demands that noticeable relief for private households is urgently needed. In view of the rising energy costs, which pose challenges for many households, the Bremen-based energy supplier SWB predicts that more and more consumers will have problems paying their gas, water and electricity bills. An increase in energy cuts is expected this year. Consequently, all stakeholders have a strong interest in the government reconsidering its measures and pursuing a broader relief approach.