Ökostromumlage

“Environmentally-friendly electricity contribution” or “share in the costs”; this is a subvention to build more solar and wind power-generating capacity in Germany. Paid by electricity consumers, this contribution will probably increase in 2013 from ~3.6 to ~5.3 eurocents/kWh, or by an additional ~60 euros per average German household.

On 07 Oct. 2012 the president of the German Federal Cartell Authority asked for this contribution to be modified because he said it will soon be as high as the price of electricity on the Exchange.

Angela Merkel’s coalition partner, the libertarianesque FDP, advertises itself as a party that lowers taxes and deregulates in the interest of simplification (though it appears to me they have trouble finding projects that do this while actually simplifying and while actually benefiting average voters and not e.g. rich people). The FDP has now called to reduce value-added tax on electricity as compensation for the Ökostromumlage. Angela Merkel’s environmental minister (CDU) disagreed, saying he first wanted to find out how their partner party would compensate for the lost budgeted funds. The Green Party said it refuses to lower subventions for alternative power sources.

Update on 10 Oct 2012: Angela Merkel’s environmental minister (CDU) is now calling for a new Ökostromumlage law.

Update on 21 Oct 2012: Tagesschau.de reports that an internal SPD paper is also calling for a value-added tax rebate on electricity. The paper also calls for student allowances (BAFÖG), the base welfare income for people seeking work (Grundsicherung für Arbeitssuchenden, EUR ~690/month) and housing allowances (Wohngeld) to be “adjusted” for the electricity contribution increase.

(ÖÖÖ koh strome oom log eh.)

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