Electricity prices under pressure: 6,500 people in the district affected!

Electricity prices under pressure: 6,500 people in the district affected!

In the Alzey-Worms district, over 6,500 people are faced with considerable difficulties in paying their electricity and gas bills on time. This alarming number, which is based on data from the Federal Statistical Office, was brought to the public by the Food-Gourmet-Gastronomy Union (NGG). The economic burden is noticeable, with tenants in particular being affected by rising energy costs. Nationwide, it is estimated that around five percent of the population is faced with payment arrears, which further exacerbates the situation.

Against this background, the NGG is calling for a reduction in electricity tax for private households in order to support people with low incomes. Guido Noll, the managing director of NGG Darmstadt and Mainz, urgently appeals to the federal government to reduce the tax and advocate for a permanent discount on electricity tax. Noll emphasizes that stable energy costs would not only benefit conventional households in the long term, but also municipal facilities.

Relief measures

The federal government has already decided on a number of measures to help citizens with the high energy prices. This week the cabinet approved draft laws to reduce electricity taxes for industry, agriculture and forestry. In the future, the affected companies will only have to pay the EU minimum tax rate. A subsidy of 6.5 billion euros towards transmission network fees is planned for 2026. This is expected to reduce electricity costs by a total of 26 billion euros, which, according to forecasts, could save families up to 100 euros annually. In particular, the elimination of the gas storage levy is seen as an opportunity to relieve families of around 50 euros per year.

However, these positive steps are viewed critically by business associations. The HDE trade association warns that many trading companies will lose their livelihood if the electricity price situation does not remain affordable for everyone. In the coalition agreement, the Union and SPD stipulated a reduction in electricity tax for everyone. Instead, the new regulations limited relief only to certain sectors, which was met with dissatisfaction.

A look at electricity pricing

Let's take a look at the background to electricity pricing: Germany experiences strong price fluctuations on the electricity exchange, which are closely linked to the origin of the electricity. While prices can drop to zero euros per megawatt hour on sunny days, they rise to over 900 euros during so-called “cold doldrums”. This is because in the absence of wind and solar, a lot of electricity has to be imported to meet demand. In the EU, average electricity prices are 29 cents per kilowatt hour - a lot less than in Germany, where households pay an average of 40 cents.

A quarter of the electricity bill in Germany comes from duties, taxes and levies. The underlying price structure is complex, and although the EEG surcharge was abolished in 2023, the basic structure of the prices remains. Energy-intensive companies in particular complain about the high electricity costs, but have sometimes received discounts on taxes and levies. However, they are not alone in an international comparison - German companies pay above-average electricity prices compared to countries like the USA and China.

A way out could be the increased expansion of renewable energies, as well as digital solutions that help consumers reduce costs. A simple change of electricity provider or the use of private solar systems could enable every single household to make a contribution to reducing the burden and at the same time live in a more environmentally friendly way.

For the Alzey-Worms district, the approval of the NGG remains an essential step in addressing the electricity tax issue and maintaining pressure on the federal government.

As the discussion about energy prices and costs continues, clear measures and transparent exchanges between government, business and citizens are crucial so that no one is left in the dark.

For more information, visit the reporting Alzeyer newspaper, the ZDF as well as the bpb.