German business representatives are urging the federal government to honour its pledge to lower the electricity tax, a promise made in the coalition agreement but left unmet for private consumers and small firms. Rising energy costs-at least in part driven by the Iranian conflict-have sharpened this call.
Chief Secretary Wolfgang Steiger told the “Redaktionsnetzwerk Deutschland” that electrification can gradually reduce dependence on volatile oil and gas prices. However, he insists that electricity must remain affordable for both households and businesses. “The electricity tax has to be cut for everyone, not just for a select few” he said, referencing the coalition contract.
The pressure is mounting on the SPD and CDU‑Fraktion in the Bundestag to bring the tax reduction into practice. Just a few days ago, leading industry groups-the BDA, BDI, DIHK, and ZDH-issued a joint statement supporting the tax cut for all consumers. In July, the administration announced it would not implement the promised reduction for private households and small businesses, citing a weak fiscal position.
Steiger also pointed to the European Commission’s new energy package. He praised the Brussels “citizen energy package” as a “right approach” arguing that it should include a demand for the electricity tax to be lowered to the EU’s minimum level. “It is contradictory to subsidise electric cars and heat pumps heavily while hindering electrification with artificially high electricity prices” he explained.
Looking ahead, the Wirtschaftsrat is calling for a stronger domestic energy supply amid the current price crisis. Steiger proposed increased use of Germany’s own gas resources-even unconventional methods such as fracking-provided they meet the highest safety and environmental standards.
