Germany: ‘The electricity price brakeman’

German Environment Minister Peter Altmeier wants to counter the steep increase in electricity prices prompted by the government’s pro-renewables energy policy. The law on the promotion of alternative energies has boosted the use of renewables from 8 to 23 per cent of power production. However, taxes paid by consumers to finance wind and solar development are expected to reach €20bn in 2013.

In the run-up to elections this year, the minister wants to freeze the tax to prevent a reductive focus on the cost to households from distorting the debate on renewables. The green energy sector has denounced the move as a “a fatal blow”.