Friday, November 8, 2024

Tax Components of German Electricity

 Before I get deep into this discussion....a note....while these are 'state-imposed'...the majority of  these German taxes don't go into the state tax pot.

Tax #1: EEG surcharge....pays for renewable projects.  Roughly 3.7 Euro cents per kWH.

Tax #2: CHP surcharge....runs around .226 Euro cents per kWH.  This is a provider-premium....that your provider gets from you (the consumer)....if they promote heating/cooling networks in their business plan.

Tax #3: Surcharge under Section 19 (2) of the Electricity Grid Fee Ordinance.  Amounts to .305 Euro cents  per kWh.  Goes to transmission system operators, for their 'losses'.

Tax #4: Offshore surcharge under Section 17f of the Energy Industry Act.  Amounts to .416 Euro cents per kWh.  Pays for off-shore wind energy projects.

Tax #5: Section 18 of the Ordinance on Interruptible Loads (AbLaV).  Amounts to .005 Euro cents per kWh.  Goes to transmission system operators.  

Tax #6: Concession fee levy.  Amounts to 1.61 Euro cents per kWh.  Covers rights of way cost.

Tax #7: Electricity tax.  Amounts to 2.05 Euro cents per kWh.  Created to encourage you to use LESS power.  Goes into a pension-retirement pot for the public. 

Tax #8: VAT, normally 19-percent.  Your normal sales tax. 

So if you were wondering  why Germans pay the most of any European country for 'power'.....it simply all adds up. 

3 comments:

Bigus Macus said...

Looks like its time for a tax revolt, to stop feeding the beast. Otherwise it will never go away and will keep increasing.

Daz said...

This is less than 6 cents per kwh pre mwst. That's not that horrendous.

Schnitzel_Republic said...

The VAT at the end of taxation...ends up pumping it up (you reach into the 44-to-46 percent range). What gets most hyped-up....everyone has gone to modern tech in a house (less energy consumed), so they look at the 2024 bill for consumption, and a 2004 bill....they tend to notice they use half as much power (unless you charge a E-car, or have a 1980s freezer in the basement)....but pay double of what you did in 2004. At some point, politicians will be drawn into discussion and forced to eliminate some taxes.