The German federal government has approved a draft law to abolish the Renewable Energy Sources Act (EEG) surcharge on 1 July 2022 rather than in early 2023 as originally planned, in an effort to alleviate the burden on electricity consumers amid growing prices. The levy, which is paid by consumers with their electricity bills, was introduced in 2000 to finance the expansion of renewables in the country and cover the difference between the market price and the market premium paid to electricity producers. The removal of the levy, which is currently set at €3.7c/kWh after €6.5c/kWh in 2021, should lower the electricity bill of a four-person household by around €300/year compared to 2021. From July 2022, the Energy and Climate Fund (EKF) will entirely finance the promotion of renewables. The draft law will now be sent to the Bundestag for approval.
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