German government approves measures to cut electricity prices

Berlin, 3 September (CTK correspondent) - The German government today approved a bill to reduce electricity grid connection charges and cut electricity tax. Cabinet spokesperson Stefan Kornelius announced the decision at a press conference. The aim is to lower the final price of electricity, which is among the highest in Europe.

Households are also expected to benefit from lower charges, while the electricity tax cut will apply only to businesses in manufacturing, agriculture and forestry. The coalition agreement signed by Chancellor Friedrich Merz's conservative CDU/CSU alliance and the Social Democrats (SPD) originally included a commitment to cut electricity tax for everyone. But after a protracted dispute, the governing parties finally agreed that households would not benefit from the cut for the time being.

Economy Minister Katherina Reiche said the measures, once approved by both chambers of parliament, would "ease the burden on consumers and businesses". According to her, an average family will save up to one hundred euros (2,400 CZK) a year on electricity.

Grid connection charges, which are part of the electricity price, are set to be reduced gradually over the next four years, starting next year. Transmission system operators should receive 6.5 billion euros (159 billion CZK) a year from the government in compensation. An estimated 600,000 companies will benefit from the electricity tax cut. The measure is expected to cost the state budget 1.5 billion euros (37 billion CZK) next year and three billion euros (73 billion CZK) in 2027.