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Merz is planning rapid electricity price reductions: Who will benefit the most in 2025?
As the new Chancellor, Friedrich Merz is planning to reduce energy prices in 2025: households can save through tax and levy reforms.
Merz is planning rapid electricity price reductions: Who will benefit the most in 2025?
With the signing of the coalition agreement between the Union and the SPD on April 9, 2025, significant changes in energy policy are imminent in Germany. Friedrich Merz (CDU), who will soon be elected chancellor, has presented ambitious plans to reduce energy prices. One of the central tasks of the new coalition will be to ensure permanently low, predictable and competitive energy costs Mercury reported.
In order to achieve this goal, several key measures are planned. This includes the abolition of the gas storage levy and the reduction of the electricity tax to the European minimum. In addition, network fees are to be reduced noticeably. These measures are intended to relieve not only companies, but also private households, which is confirmed by a current analysis by Gizmodo is underpinned.
Planned relief for households
The relief to be achieved through the planned emergency program could be significant. For a family household with an annual consumption of 4,000 kWh, gross savings of 238 euros per year are expected. Couples with a consumption of 2,800 kWh could save 167 euros, while single households with a consumption of 1,500 kWh would have to pay around 89 euros less. The average electricity price could therefore fall by around 17 percent and fall back to the pre-crisis level of 2021.
Another important point is the abolition of the gas storage levy, which currently amounts to 0.299 cents/kWh. The elimination of this levy would save a family in a single-family home with an annual consumption of 20,000 kWh around 71 euros gross. In a 100 m² apartment with 12,000 kWh it would be 43 euros, and a single household with 5,000 kWh could expect a relief of 18 euros.
These measures should be implemented “as quickly as possible”, with the new federal government having to be confirmed in office on May 7, 2025. Merz plans to take the first steps to implement the relief in 2025. According to media reports, Carsten Linnemann (CDU) could be appointed as Economics Minister, which would support the implementation of the planned reforms.