The German Association of Cities (Deutscher Städtetag) has issued a stark warning against excluding private households from planned reductions in electricity tax. Burkhard Jung, President of the Städtetag, emphasized that failing to lower the tax for residential consumers would create significant social and political challenges and potentially undermine the country’s transition to renewable heating technologies.
Jung highlighted the upcoming requirement for municipal heat planning, noting that homeowners are currently deciding whether to invest in electric heat pumps or continue using gas heating systems. He cautioned that sending a message that “electricity remains expensive, while gas becomes cheaper” would be detrimental to the shift towards renewable heating. The current government plans prioritize reductions to the gas levy while not mirroring the reduction with electricity tax, a point of criticism from Jung.
As a potential compromise, Jung proposed lowering the gas levy for industrial use while simultaneously reducing electricity taxes for private households. He argued that many citizens are already heavily burdened by rising rents and energy costs and need to see tangible progress.
Jung urged the federal government to reconsider its current policy and appealed to the Federal Council, which is scheduled to vote on a recommendation for the 2025 federal budget (including a discussion of electricity tax) on Friday, to advocate for a reduction in electricity taxes specifically for private households.