In June 2025, the German government decided to reduce the electricity tax for the manufacturing sector, along with agriculture and forestry. This measure aims to provide financial relief to these industries. However, private households and small businesses will not benefit from this tax reduction for the time being.
This decision has drawn criticism, with concerns raised about breaking the coalition agreement. Critics point out that the initial plan was to lower the electricity tax for all consumers. Consumer advocates and business associations also expressed disapproval, citing already high electricity prices in Germany.
The government argues that consumers will be relieved through the abolition of the gas storage levy and the planned reduction of network charges. These measures are expected to reduce electricity costs by about two to three cents per kilowatt-hour, but will only take effect from 2026.