Germany’s future coalition seeks to cut electricity tax and grid fees
Investing.com -- Germany’s incoming coalition government, consisting of the conservative CDU-CSU bloc and the centre-left Social Democrats, has agreed to reduce the electricity tax and grid fees. This move is aimed at decreasing electricity prices in Europe’s largest economy by a minimum of 5 cents per kilowatt-hour.
The coalition has also agreed to introduce incentives to encourage the construction of up to 20 gigawatts of gas power plant capacity by 2030. This is part of a legislative package that includes the adoption of carbon capture and storage (CCS) technology, which will be applied to gas-fired power plants.
In addition, the coalition plans to repeal a contentious heating law and a gas storage levy. These were originally introduced by Berlin in 2022 to offset the costs incurred from replacing Russian gas after Moscow ceased its deliveries.
The coalition agreement also highlighted plans to reintroduce tax rebates for diesel fuel in agriculture. This move will be complemented by the introduction of new purchase incentives for electric vehicles.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
