Overview

• The government will reduce the electricity tax from 2.05 to 0.05 cents per kilowatt-hour and halve network charges under a package due by mid-July 2025.
• Analysis by the Institut der Deutschen Wirtschaft shows these measures could save an average household around €220 annually based on 4,000 kWh consumption.
• The relief scheme is projected to cost the federal budget over €21 billion per year in foregone revenue.
• Surveys indicate nearly 90 percent of Germans feel burdened by current energy prices and almost half have already cut consumption to curb costs.
• Experts warn that rising CO₂ levies could add up to €280 to 2026 gas-heating bills and that lasting relief depends on structural reforms such as grid expansion and storage integration.