Overview

• The coalition committee indefinitely postponed the promised electricity tax cut for private households and craft businesses due to budget constraints.
• Only industry, agricultural and forestry firms will continue to benefit from lower tax rates under the current relief scheme.
• Prime ministers of Rhineland-Palatinate and Thuringia have publicly urged the federal government to honor its coalition agreement by extending the tax cut to all consumers.
• Utility example calculations indicate that lowering the tax to the EU minimum of 0.1 ct/kWh could save a two-person household about €58.50 and a four-person household about €85.80 annually.
• In 2024, a record 7.1 million electricity and 2.2 million gas customers switched providers while energy disconnections rose by roughly 20%, prompting calls from groups like the VdK for stronger protections against energy poverty.