BERLIN, March 9 (Xinhua) -- The German government on Wednesday approved a draft law on the abolition of the Renewable Energy Sources Act (EEG) levy in July this year rather than in early 2023 as originally planned. The decision came in response to the recent sharp rise in energy prices.
After July, electricity consumers in Germany would no longer have to pay the levy, which was introduced in 2020 to finance the expansion of solar, wind, biomass and hydropower plants, according to the government.
Electricity providers would be obliged to pass on the cost savings in full to their customers. Compared to 2021, a family of four would save around 300 euros (330 U.S. dollars) per year without the EEG levy, which is currently 3.72 euro cents per kilowatt hour.
"The abolition of the EEG surcharge can ease the pressure somewhat. But we need to talk about further relief in view of the now exorbitantly increased prices," Minister for Economic Affairs and Climate Action Robert Habeck said in a statement on Wednesday.
The promotion of renewable energies would be financed from the government's special Energy and Climate Fund (EKF) which would be burdened with an additional 6.6 billion euros as a result of the early abolition of the levy, the government said.
In 2021, energy products increased by 10.4 percent year-on-year in Germany, according to the Federal Statistical Office (Destatis). Motor fuels and heating oil prices increased by 22.6 percent and 41.8 percent, respectively.
The draft law would now be forwarded to the Bundestag (lower house of the German Parliament). Approval by the upper house (Bundesrat) is not required. (1 euro = 1.11 U.S. dollars) ■
