“The fairness gap in the distribution of Energiewende costs on private households”

Low-income households pay more for electricity levies and taxes which help finance the Energiewende than high-income households – relative to their income, says economic research institute RWI Essen in a new paper. But most people wish that wealthier consumers contributed a larger part to transforming the German energy system, it adds. This was a fairness gap between the desired and the real cost distribution. Wealthier households also showed the willingness to shoulder more of the costs, according to a survey of more than 11,000 homes. RWI Essen says a fundamental reform of the tax and support system is unlikely with the current political backdrop and calls for “relatively easily enactable measures” like waiving the value added tax on the power price. 

Find the paper in German here.

For background read the CLEW factsheets What German households pay for power and the article Debate on financing renewables in new ways gathers pace in Germany.