As of: 08/29/2022 9:37 p.m
That should cause trouble at traffic lights: According to a media report, Minister of Economics Habeck is having an excess profit tax calculated for electricity from lignite and renewables. This is how relief should be financed.
In order to finance relief for high energy costs, the Federal Ministry of Economics is examining the introduction of an excess profit tax on electricity generated from lignite and renewable energies, according to a “Spiegel” report.
As the “Spiegel” reported, citing the “environment of the ministry”, there are considerations that the state might set a fixed consumer price for electricity from these sources. The sum that the producers also earn from sales on the electricity markets, they would have to cede to the state. According to “Spiegel”, Habeck’s employees calculate how high the fixed price can be set and how much money the federal government would earn in this way.
Gas power plants determine the price
Due to the design of the electricity market in Europe, the high generation prices of gas-fired power plants are currently determining the prices on the electricity exchanges. Electricity from renewable energies and lignite is much cheaper to produce, but the producers receive the currently extremely high prices on the electricity exchanges. Their profits have therefore increased significantly since the start of the Ukraine war.
The term excess profit tax refers to state deductions on the profits of companies in certain sectors that are earning significantly better than usual as a result of a crisis – currently, for example, the Ukraine war and its consequences. The focus of the proponents are in particular energy companies.
The FDP around Federal Finance Minister Christian Lindner rejects an excess profit tax. The traffic light coalition is currently arguing regarding how exactly the burden on citizens, but also on companies, should be alleviated by the high prices, especially for energy and food.
“Transformation Happens”
At a panel event in Berlin, Habeck once more campaigned for the rapid conversion of the economy to renewable energies. “The transformation is happening,” he said. There is no going back to fossil energies, Germany has become far too dependent on Russian supplies. There will also be losers who the state will have to absorb socially. Russian gas supplies are already missing: “It’s a bitter reality.”
The gas surcharge, which has come under criticism and will require special payments from consumers from October, is necessary. Otherwise the gas importers would hardly be able to maintain their credit ratings if they might no longer get credit. Then they might no longer procure gas.
