Germany: Electricity prices explode - government is only planning partial relief!

Germany: Electricity prices explode - government is only planning partial relief!

Deutschland - Germany, a country that is not only known for its economic success, also has the darkest side of the highest electricity prices worldwide. While electricity prices in the Federal Republic continue to shoot up, the federal government is based to intervene in energy prices. According to a current analysis by Verivox, the average electricity price in Germany is 38 cents per kilowatt hour (kWh) and thus takes fifth place under 143 countries. Only in Bermuda, Belgium, Ireland and Denmark do consumers pay more for their electricity, such as Federal Government , three central measures are to be implemented from January 2026:

• The abolition of the gas storage levy.
• The continuation of the reduction in electricity tax for manufacturing businesses.
• partial financing of the transmission network charges from the household.

These steps are necessary in order to not only relieve private households, but also the economy. The gas storage levy is compensated for up to an amount of around 3.4 billion euros from the climate and transformation fund. Lower gas prices are expected to reduce the costs of electricity production in gas power plants, which could have a positive effect on electricity prices.

These proposed changes will soon be discussed in the Bundestag. The first discussion is at the beginning of July, while the final adoption of the budget is on the agenda for 2025 in September. First of all, the legal foundations for the energy price measures must be created before the Federal Council's consent and the signing by the Federal President are made.

The question remains whether these measures actually lead to a noticeable relief for consumers. After all, a look at the international comparisons shows that Germany has to deal with the highest electricity prices worldwide. Only Italy and some other countries among the G20 have higher prices, which increases the concern among consumers that the high costs will continue to exist, such as summarized.