In view of the high electricity prices, the traffic light coalition is considering abolishing the tariff surcharge levied to promote green electricity earlier.

FDP parliamentary group leader Christian Dürr spoke out in favor of discontinuing the so-called EEG levy by autumn.

After two years of the corona crisis, the rising energy prices are “a slap in the face for many people,” Dürr told the “Bild” newspaper.

To relieve the electricity tariffs would have to fall, which the traffic light government will now tackle.  

Christian Geinitz

Business correspondent in Berlin

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According to the coalition agreement, the EEG surcharge should actually only be dropped in the coming year and then replaced from budget funds. In the current year, it has already fallen by 43 percent to 3.7 cents per kilowatt hour following a decision by the grand coalition. This is the lowest value since 2012, but still accounts for more than ten percent of the electricity price. There is now talk of abolishing the surcharge immediately, as electricity costs have risen to a record level and gas tariffs have also reached unimagined heights. All private households and many businesses pay the EEG surcharge. Large companies and energy-intensive companies are already exempt from this, so the abolition would not bring any relief for them.

Federal Minister of Economics Robert Habeck (Greens) told Spiegel magazine that the intention was to “relieve the burden significantly” on consumers by reducing the EEG surcharge, “and as early as possible”.

Habeck's house did not want to give a specific date on Monday, but speculated about July 1st or October 1st.

From the Ministry of Finance it was only said that the future of the levy would be discussed within the coalition.

Around 10 billion euros would be lost

The systems for generating renewable energies will continue to be subsidised, even after the surcharge has expired. So far, income from the new national CO2 pricing of fuels, heating oil and natural gas has also been used. It still seems unclear whether the newly designed “Climate and Transformation Fund” will be used. The federal government originally expected revenue from the EEG surcharge of around 10 billion euros for 2022, some of which could now be eliminated.

The new SPD chairman Lars Klingbeil confirmed the abolition of the levy: “We are now examining whether it can be brought forward.” Discussions are being held with the coalition partners about this relief for consumers: “I am very sure that it will be done there very quickly can come to results.” SPD co-leader Saskia Esken also advocated that low-cost providers in the electricity and gas markets should be more heavily regulated.

It cannot be the case that energy suppliers tempt with very low tariffs and then leave consumers out in the rain, she said with a view to a wave of contract terminations due to the sharp rise in gas prices.

The Reuters agency reports that the supplier is examining an obligation to remain in the market.

Short-Term Layoff Law

With a legal reform, the federal government wants to put a stop to short-term terminations of electricity and gas contracts by cheap suppliers and price jumps. Oliver Krischer (Greens), Parliamentary State Secretary in the Federal Ministry of Economics, told the German Press Agency in Berlin: "It was and is a great burden for many people and a great shock to suddenly find a notice from the gas or electricity provider in the mailbox."

Specifically, Krischer announced that there should be uniform tariffs in the basic service in the future, so that new customers do not pay twice or three times as much as existing customers.

"Split basic service tariffs are ultimately just an unnecessary employment program for courts, which we want to avoid." Split tariffs mean a split for new and existing customers.

In addition, the termination of gas or electricity deliveries should in future have to be announced several months in advance so that consumers can look for a new supplier in peace, says Krischer.

The ministry wants to react to the fact that many low-cost providers have experienced turbulence and thousands of contracts have been terminated.

"Putting basic services on a new footing"

These consumers then fall into the so-called replacement supply with the basic supplier of the respective municipality - but according to the consumer centers often have to pay significantly more.

"There is a need for action," said Krischer. "We therefore want to raise the hurdles for delivery stops and put the instrument of basic and replacement care on a new footing."

The ministry will also make suggestions as to how the Federal Network Agency can better filter out dubious competitors.

"The fact that around one million gas and electricity customers are terminated within a very short time must not be repeated."

The economic policy spokeswoman for the Union faction, Julia Klöckner, had previously called for the immediate abolition of the levy, but the government factions in the Bundestag had taken action to do so.

The Left Party also campaigned for the rapid abolition of the EEG surcharge.

“The EEG surcharge should be canceled today rather than tomorrow.

The energy turnaround must no longer be at the expense of all citizens equally, otherwise acceptance will decrease," said left-wing economic politician Victor Perli.