Germany Cannot Estimate Costs for New Gas‑Plant Strategy, Leaving Consumers in Price Uncertainty
Economy / Finance

Germany Cannot Estimate Costs for New Gas‑Plant Strategy, Leaving Consumers in Price Uncertainty

After reaching a framework agreement with the EU Commission on the construction of new gas power plants, it remains unclear what costs will ultimately be passed on to electricity customers in Germany.

The Federal Ministry of Economics confirmed in its written response to a question from Green Party MP Michael Kellner – which the “Welt” reports on – that financing the so‑called “Power Plant Strategy” will be carried out through a surcharge.

“The design of the surcharge is still under discussion. Therefore the amount cannot yet be estimated” says State Secretary Frank Wetzel in the statement. “The surcharge will only be introduced with the Capacity Market Act in 2027 and will be levied from 2031 onward”.

Kellner criticized the lack of cost transparency: “It’s hard to believe that the federal government does not know how costly electricity will become under the power plant strategy. One thing is clear, though: electricity prices will rise” he told “Welt”. “That’s why it is so important not to over‑dimension the capacity market and to issue the tender in a truly technology‑open way, rather than clinging solely to fossil gas”.