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Government endorses electricity bill elimination for households

Energy policy initiatives from the federal administration are being met with persistent criticism, primarily focusing on a particular decision.

Government gives green light for electricity consumers to cut ties with suppliers
Government gives green light for electricity consumers to cut ties with suppliers

Government endorses electricity bill elimination for households

The federal government in Germany has announced relief measures for electricity customers, aiming to alleviate the burden of high electricity prices. However, these measures have sparked a wave of criticism from various associations and unions, who argue that the relief does not go far enough.

At the forefront of the criticism is Jörg Dittrich, President of the Zentralverband Deutscher Handwerks (Central Association of German Crafts), who has openly criticized the government for not lowering the electricity tax as promised. He has been president since 2023 and has emphasized the need for economic policies that support small and medium-sized enterprises, particularly in the crafts sector.

Similarly, DGB board member Stefan Körzell has demanded a reduction in the electricity tax for all consumers and a federal takeover of the electricity transmission networks. Körzell has suggested these measures as a means of addressing high electricity prices and has implied that the federal government's decisions regarding electricity prices have eroded trust among certain associations.

Business associations have also accused the government of breaking its word regarding the reduction of the electricity tax. The IG Metall union has joined the chorus, calling for a competitively priced industrial electricity price for energy-intensive industry to be introduced quickly. They have highlighted the potential loss of thousands of jobs in the steel industry and other sectors due to high electricity prices.

Without a relief in industrial electricity prices, thousands of jobs in the steel industry and other sectors could be lost forever, according to the IG Metall union. They have emphasized the need for a competitively priced industrial electricity price to prevent job losses and maintain the competitiveness of German industries.

Economy and Energy Minister Katherina Reiche (CDU) has stated that the measures are good news for electricity customers in Germany. The relief measures include a reduction in network charges for both private households and businesses. The federal government plans to provide a subsidy of 6.5 billion euros for transmission network operators next year, which should lead to a reduction in network charges for private households.

The government expects a family to save up to 100 euros a year on electricity costs due to these measures. However, it is important to note that these relief measures do not apply to all electricity customers in Germany. The relief for businesses in the manufacturing sector and agriculture will be made permanent.

Despite the relief measures, there is still broad criticism that the electricity tax is not being reduced for everyone, despite the coalition agreement promising this. Jörg Dittrich, President of the Central Association of German Crafts, has criticized the federal government's relief measures for not applying to all electricity customers in Germany, calling it a "massive breach of trust."

As the debate continues, it is clear that the issue of high electricity prices and the relief measures to address them remain a contentious issue in Germany. The federal government will need to find a solution that addresses the concerns of all stakeholders, particularly small and medium-sized businesses, to maintain trust and support for its economic policies.

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