In the face of rising electricity prices, companies are urging the new government to take decisive action on climate goals outlined in the coalition agreement. They advocate for significant reductions in grid charges and electricity taxes, emphasizing that climate neutrality can enhance competitiveness and prosperity amidst geopolitical tensions and economic challenges. Political parties CDU/CSU and SPD are responding to this call, aiming to lower electricity taxes and halve grid charges, potentially easing consumer costs by at least 5 cents per kWh.
Michael Otto, President of the Climate Economy Foundation, insists that the intersection of economic growth and climate protection must be prioritized. He argues that immediate action on climate initiatives is essential for the welfare of future generations. Furthermore, a study suggests that expanding electricity networks and utilizing smart technologies could lead to a 30% reduction in electricity prices across the EU by 2040. Innovations such as smart meters are expected to optimize energy consumption and alleviate stress on infrastructure.
The urgency for reform is echoed by Energy UK, which highlights the need for Keir Starmer's energy bill cut by 2030. Households equipped with flexible technologies like batteries or electric vehicles could save up to £115 annually. The recommendation includes shifting policy costs to gas and funding renewable initiatives through general taxation, potentially reducing bills by £400 for homes reliant on electric heating. Additionally, the government has earmarked £1.8 billion for energy-saving upgrades in social housing, aiming to support low-income households in managing their energy expenses effectively.
