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 association and Mayor of Leipzig, cautioned that failing to lower the electricity tax for consumers could create significant social and energy policy challenges.
Jung emphasized that the impending implementation of municipal heat planning next year necessitates careful consideration of consumer decisions. Homeowners are currently deciding whether to transition to electricity-powered heat pumps or continue using gas for heating. He argued that signaling “electricity remains expensive, gas becomes cheaper” at this critical juncture would undermine the national energy transition efforts.
The current government proposal to reduce the gas levy while maintaining high electricity tax rates has drawn criticism. As a potential solution, Jung suggested lowering the gas levy for industry while simultaneously reducing electricity tax for private households.
Jung highlighted the need for electricity tax relief given the increasing financial strain on citizens already burdened by rising rents and energy costs. He believes that citizens need to perceive tangible progress within Germany. The Association is therefore urging the federal government to reconsider its current position.
The appeal extends to the Federal Council, which will vote on a recommendation for the 2025 federal budget, including provisions related to electricity tax, imploring them to advocate for a reduction in electricity tax specifically for private households.
