Energy: SPD brings into play an alternative to reducing electricity taxes

Berlin. In the dispute over the reduction in electricity tax, the SPD is now calling for relief from energy prices for industry elsewhere. Sebastian Roloff, economic policy spokesman for the SPD parliamentary group, told the Handelsblatt: “Low energy prices for industry are currently the main location factor.” Before the Chancellor presents an electricity tax reduction for everyone without counter-financing, he expects “the federal government to secure and consolidate the measures that are already in place.”

Specifically, Roloff is concerned with the “Middle East Crisis Temporary State Aid Framework” (METSAF). The EU decided on this in the spring. It allows member states more scope for state aid to cushion the restrictions caused by the closure of the Strait of Hormuz and the increased prices for oil, gas and fertilizer.

This regulation is particularly important for the German economy. It makes it possible to combine the new industrial electricity price and the electricity price compensation, which offsets the CO₂ costs of electricity-intensive companies. The EU actually prohibits double funding for companies with both instruments. But this is currently allowed.

But the METSAF expires at the end of the year. German industry will only be able to receive the double funding retroactively for this year. In this context, Roloff points out that the effects of the Iran war have by no means been overcome. He therefore appeals to the federal government: “Specifically, it must continue to be possible to combine industrial electricity prices and electricity price compensation for our industry.”

The expanded legal framework also enables the state to increase its aid from 50 to up to 70 percent of eligible electricity costs - particularly for electricity price compensation.

Friedrich Merz (CDU) has not yet commented on a possible extension of METSAF. Rather, the Chancellor is pushing for the electricity tax to be reduced to the European minimum of 0.1 cents per kilowatt hour for all companies and private households from 2027.

So far, only the manufacturing industry as well as agriculture and forestry have benefited from this. Expanding this next year would cost the federal budget around five billion euros annually.

While Finance Minister Lars Klingbeil (SPD) claims that there is currently insufficient financial scope for a general reduction in electricity taxes for everyone, Merz points to the improved growth prospects, which would ultimately increase tax revenue.

The extension of the METSAF, however, would initially not incur any costs. The longer ability to combine industrial electricity prices and electricity price compensation would cost the state more, but certainly not five billion euros per year.