CDU initiates reduction in electricity prices: 200 euros less for German households

Merkur CDU initiates reduction in electricity prices: 200 euros less for German households Amy Walker • 1 hour • 3 minutes reading time Union's emergency program The CDU wants to adopt an emergency program at the party conference. This includes measures that are to be implemented quickly after the federal election. There is good news for consumers. Berlin - The federal election campaign is now heading towards the final stretch: On Monday, February 3, the CDU and CSU union will meet in Berlin for the party conference. An emergency program is to be adopted there, which contains a bundle of measures that a new government under the Union would implement right at the start of its term in office. In the emergency program, the Union writes, among other things, that it wants to reduce electricity prices for everyone. To do this, it wants to reduce the electricity tax. Lower electricity tax, stabilize network charges: CDU plans to provide relief for everyone with an immediate program In the immediate program, which is to be adopted in Berlin on Monday, the Union writes: "We are reducing the electricity tax and network charges - for a relief of at least 5 cents per kWh. Electricity must become cheaper for everyone." In Germany, only 43 percent of the electricity price consists of the costs of procurement and distribution; the majority of the electricity price comes from network charges and taxes. As the Federal Network Agency writes, in 2024 household customers spent an average of 13.22 cents per kilowatt hour on network charges and 10.27 cents/kWh on taxes and duties. Without these components, electricity only cost 18.10 cents/kWh. Reducing these components could actually make a big difference for households. The comparison platform Verivox has even calculated that reducing the electricity tax alone would make the price seven percent cheaper in one fell swoop. Lowering electricity tax: Union plan would significantly reduce the burden on households The electricity tax in Germany is currently 2.05 cents/kWh. That is far more than what the EU specifies as the minimum level: 0.1 cents/kWh is what member states must charge. If the new government were to lower the electricity tax to this minimum level, a family with an annual electricity consumption of 4000 kWh would pay 93 euros (gross) less per year, according to Verivox. With a consumption of 2500 kWh it would be 65 euros less, with 1500 kWh around 35 euros less. "The horrendous electricity prices in the energy crisis year of 2022 are now a thing of the past. Nevertheless, the electricity price level is currently around 5 percent higher than before the energy crisis. In addition, households in Germany are heavily burdened by taxes and levies on electricity prices. A reduction in the electricity tax would therefore be a sensible step to permanently reduce household costs," says Thorsten Storck, energy expert at Verivox. Reducing the network charges would bring further relief for households in terms of electricity prices The possible consequences of a reduction in the network charges are more difficult to predict, as these vary from region to region. The Union wants to reduce the price of electricity by a total of 5 cents/kWh. In order to keep this promise, in addition to reducing the electricity tax to 0.1 cents/kWh, it would have to obtain a further 3.05 cents/kWh in relief from the network charges. According to the Federal Network Agency, household customers currently pay an average of 10.8 cents/kWh for network charges across Germany. Between 2024 and 2025, numerous customers have already been relieved of the burden, and on average the costs have fallen by two cents/kWh. A further reduction of 3 cents/kWh would relieve a household with 4000 kWh of annual consumption by another 100 euros. Overall, this budget would come to 1200 euros instead of 1400 euros per year in electricity costs if the Union keeps its promise. Lowering electricity prices would burden the state budget: at least 12 billion euros are missing However, the CDU and CSU would have to compensate for the lost revenue for the federal budget. In 2023, the German state collected 6.8 billion euros from the electricity tax, as the Ministry of Finance explains. The network fees go to the network operators, who use the money to finance the expansion of the electricity network. Until the beginning of 2024, however, the German state stabilized the network fees with around five billion euros in subsidies. This subsidy was canceled by the traffic light coalition after the budget ruling in November 2023. If the next government really wants to reduce the network fees, it must reinstate the subsidy - and also forego the revenue from the electricity tax. Together, the costs amount to more than twelve billion euros, which would be an additional burden on the federal budget as a result of these measures.