Northern Germany demands a drastic reduction in electricity prices now!

Northern Germany demands a drastic reduction in electricity prices now!

In what at first glance seems to be unpleasant news from northern Germany, the heads of government of the northern German states are urgently calling on the federal government to reduce electricity costs for citizens and industry. At a recent Northern Germany Conference (KND), a resolution was passed that aims to achieve a structural reduction in electricity prices. The governments of Lower Saxony, Bremen, Hamburg, Schleswig-Holstein and Mecklenburg-Western Pomerania agree: the energy transition must not be left behind, and this also includes fair prices.

Energy prices under pressure

The KND welcomes the Berlin government's planned relief measures, such as the reduction in electricity tax, the reduction of network fees and the abolition of the gas storage levy, but that is not enough for the northern German states. They are pushing for further measures, such as the introduction of an industrial electricity price that is permitted under state aid law. A structural reform of the financing of network fees is also on the wish list. In their warning of a “thread break” in the energy transition, the heads of government emphasize the need for a rapid expansion of renewable energies.

Challenges of the energy transition

The first reform measures could be implemented as early as next year. A new compensation system for green electricity is proposed for 2026. The goal is clear: Germany needs an electricity market design that enables falling costs. The KND also calls for a robust long-term strategy for the climate-neutral restructuring of the energy system in Germany, which goes by the name “Energy Plan Germany”. Criteria such as security of supply and affordability must not be neglected.

In addition, the federal government makes it clear that Germany does not have to buy expensive electricity from abroad as long as domestically generated electricity remains competitive. The European internal electricity market ensures that electricity is traded across borders, meaning consumers can benefit from cheaper prices. The current situation also makes it clear that Germany is getting more and more electricity from renewable energies. By 2023, over 50 percent of the country's electricity was generated from these sources, which represents an important step towards climate neutrality. A change that points to the need for a sustainable energy system in which the share of coal is continually decreasing and the use of natural gas is increasing.

An act of solidarity

The northern German states see themselves as the cornerstone of the energy transition, particularly through the expansion of wind power on land and at sea. These regions have been strongly committed to the energy transition in recent years and are making a significant contribution to the nationwide goals. A sustainable and affordable electricity price is not only an economic concern, but also a question of social justice.

Overall, it remains to be seen how the political decisions in Berlin will affect the situation of local citizens and companies. The pressure from the northern federal states is noticeable; the time for change seems ripe.