The failure, for the time being, to cut electricity tax electricity tax for everyone prompted cross-party criticism in Schleswig-Holstein Schleswig-Holstein on 13 November 2026. Minister-President Daniel Günther called for the levy to be reduced for all businesses and private households. The state SPD leader, Ulf Kämpfer, and members of the state government also called for broader relief. Earlier, the CDU/CSU and SPD had failed to agree on funding during discussions on the 2027 federal budget federal budget.
Günther said that the minister-presidents had jointly called for the cut. Kämpfer stressed that, alongside private households, small and medium-sized businesses, tradespeople and service providers should also benefit. Schleswig-Holstein’s Environment Minister Tobias Goldschmidt also criticised the postponed cut, arguing that cheaper electricity would encourage the use of heat pumps and electric vehicles.
The dispute concerns a commitment in the coalition agreement between the CDU/CSU and SPD: electricity tax is to be reduced to the European minimum for everyone. According to the of the Federal Government, published on the same day. They show both increased participation in the a permanent reduction has applied since 1 January 2026 to the manufacturing sector and to agriculture and forestry. Private households and other businesses do not benefit from this measure to the same extent.
The budget talks left the question of how to fund the measure unresolved. SPD parliamentary group leader Matthias Miersch said on 12 November that he saw no sufficient room for it. CDU/CSU politicians, by contrast, continued to press for the cut. On 13 November, the federal government said that a cut for private households too would depend on sufficient room in the budget. A decision at a later date has therefore not been ruled out, but no funding plan for a general cut was available.
Separately from electricity tax, the Bundestag has approved arrangements for subsidies towards grid charges. According to the federal government, €5.525 billion a year is to be made available for this purpose from the Climate and Transformation Fund between 2027 and 2029. The subsidy will amount to €6.5 billion in 2026. Before the new arrangements come into force, the The positions now put forward are initially demands or proposals from individual states, not measures that have already been approved. must also consider them.
The distinction matters to consumers: electricity tax is a levy on consumption, while grid charges fund the use of the electricity network. A subsidy for these charges therefore does not replace a general tax cut. According to the federal government, how much a household benefits from the grid subsidy depends, among other things, on the local distribution network and its consumption.
On 29 October, the Federation of German Consumer Organisations and other business associations had already called for an electricity tax cut for everyone in a joint appeal. They said they expected it to boost purchasing power and make it easier to invest in electric technologies. As of 13 November, it remained unclear whether and when the coalition would provide the necessary funding.
Editor: Phillipe Schmidt-Araguin (Article created with AI assistance).