Minister of Economic Affairs - Meyer: Electricity will become more expensive due to plans for the federal budget
Mecklenburg-Western Pomerania's Economics Minister Reinhard Meyer (SPD) expects electricity prices to rise following decisions made by the Berlin coalition leaders on the federal budget. "It is understandable that savings have to be made due to the new federal budget situation," Meyer was quoted as saying in a statement on Wednesday. "However, the decision taken means that electricity prices will rise again slightly from January 1, 2024, despite the current drop in electricity prices."
The leaders of the traffic light coalition want to cancel a planned billion-euro subsidy for grid fees. The fees are a component of the electricity price.
According to Meyer, 50Hertz, the transmission system operator responsible for Mecklenburg-Vorpommern, would add the grid fees to the electricity prices without relief from the federal subsidy. "At the same time, the electricity price brake is being removed. These developments are exacerbating the social and economic imbalance, as we have to expect cost increases for citizens and companies."
The Berlin traffic light coalition had actually planned a federal subsidy of up to 5.5 billion euros for the coming year to proportionally finance the transmission grid costs. The money was to come from the economic stabilization fund. However, as a result of the budget ruling by the Federal Constitutional Court, the federal government will have to dissolve this special fund at the end of the year.
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- Despite the current decrease in electricity prices, the cancellation of a billion-euro subsidy for grid fees by the traffic light coalition leaders could lead to a slight increase in electricity prices from January 1, 2024, according to Mecklenburg-Western Pomerania's Economics Minister Reinhard Meyer.
- The Federal Government, as a result of the budget ruling by the Federal Constitutional Court, will have to dissolve the economic stabilization fund at the end of the year, thereby preventing the traffic light coalition from financially supporting the transmission grid costs.
- The electricity price brake is also being removed, as part of the changes to the federal budget, which is expected to exacerbate the social and economic imbalance, resulting in increased costs for households and businesses.
- The leaders of the traffic light coalition, consisting of the SPD, the Greens, and the Free Democrats (FDP), must now find another way to finance the grid costs without the help of the billion-euro subsidy, which was initially planned to come from the economic stabilization fund.
- Reinhard Meyer has criticized the removal of the electricity price brake and the cancellation of the subsidy, arguing that these decisions will create additional burden for families and companies in Mecklenburg-Western Pomerania, where electricity prices are already relatively high.
- The Federal Government, along with the individual states, must now work together to find a solution to the issue of financing the transmission grid costs, in order to prevent the increase of electricity prices from impacting households and businesses in a negative way.
- Some experts have suggested that the Federal Government could consider implementing new energy policies to promote renewable energy sources and reduce dependence on fossil fuels, as a way to mitigate the impact of rising electricity prices on citizens and businesses.
Source: www.stern.de
