Willingmann calls for a drastic reduction in electricity taxes for all households!

Willingmann calls for a drastic reduction in electricity taxes for all households!

In a recent initiative, Saxony-Anhalt's Energy Minister Armin Willingmann (SPD) called for a reduction in electricity tax, which is primarily intended to relieve the burden on private households and smaller businesses. In a letter to Federal Economics Minister Katherina Reiche (CDU) and Federal Finance Minister Lars Klingbeil (SPD), he criticizes the fact that the current tax relief predominantly benefits large companies, while many citizens and smaller companies are left behind. “There is something there,” emphasizes Willingmann, who points out that households with low incomes are particularly suffering from the increased electricity prices, especially in eastern Germany, where wages are traditionally lower. Electricity prices for these households have risen particularly sharply in recent years. Picture reports that Willingmann wants to reduce the electricity tax in two steps: from January 1, 2026 by one cent per kilowatt hour and a further reduction of one cent in 2027. “Our goal is to achieve the European minimum level,” he explains, while private households currently pay more than two cents per kilowatt hour.

The price for this measure is around 2.7 billion euros, which Willingmann considers feasible given a federal budget of 503 billion euros. He also reminds us that a reduction was stipulated in the coalition agreement between the Union and the SPD and calls for a strong signal against the disillusionment with politics among the population. He also receives support for his demand from Saxony-Anhalt's Prime Minister Reiner Haseloff (CDU), who, however, has not made any proposal of his own.

Background of the discussion

How daily news reported, the Union and the SPD had originally sought a comprehensive reduction in electricity tax for everyone. However, these plans were steered in a narrower direction due to budgetary constraints and the need to reduce debt. Chancellor Friedrich Merz (CDU) and Finance Minister Lars Klingbeil (SPD) emphasize that the tax relief primarily benefits industry as well as agriculture and forestry and should therefore not place an excessive burden on the public sector. Merz explained: “We also have to look at the federal budget,” and pointed out that the debt would have to be borne by the next generation.

Despite these restrictions, there is resistance within the governing parties. Voices from the CDU and SPD are calling for the decision to be reconsidered and for the electricity tax to be discussed further in the upcoming budget negotiations. “The issue is far from over,” said SPD politician Dirk Wiese. At the next meeting of the coalition committee on Wednesday, among other things, it will be discussed which expenses can be dispensed with in order to enable further relief.

Future relief

At the same time, the federal government is planning measures to reduce energy costs in order to relieve the burden on both private households and the market-oriented economy. From January 1, 2026, citizens should benefit from around 10 billion euros annually in energy costs Federal Government explained. In addition, the aim is to abolish the gas storage levy in order to achieve lower gas prices, which could also reduce electricity production and ultimately electricity prices. Families with four people can expect up to 100 euros less energy costs per year from 2026.

Overall, the electricity tax debate reflects the challenges and tensions facing the government. Efforts to provide relief to the population are caught between financial constraints and maintaining political credibility.