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German Government to Cut Electricity Costs and Repeal Heating Mandate

88% of households report financial strain from energy prices as new policies aim to ease burdens and address heating concerns.

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Overview

  • A recent survey revealed that 88% of German households feel burdened by high energy costs, with gas and oil users expressing the most concern.
  • The new coalition government plans to reduce electricity prices by at least five cents per kilowatt-hour through tax cuts and capped network fees.
  • The government also intends to repeal the Heating Act, which required new heating systems to use 65% renewable energy, though replacement regulations remain unclear.
  • Rising CO₂ prices and network charges could increase annual heating costs by up to €280 for gas users and over €400 for oil users by 2026.
  • Heat pumps, which account for only 4% of existing systems but dominate new installations, are viewed as more cost-stable by their users.