Energy cost relief: This is what the relief package does


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In order to mitigate the sharp rise in energy prices and the associated financial impact on people and the economy, the federal government launched the second energy price relief package on March 24, 2022.

Companies are also to be supported with a further, comprehensive package of measures. Especially those affected by sanctions or the current war. Here you can find out what the second energy cost relief package entails for companies.

Energy cost relief: implementation of the package of measures

On April 27, 2022, the cabinet decided to implement the package of measures to deal with the high energy prices. With such an implementation, the EU member states have considerable leeway under the EU Energy Tax Directive, which has been in force since 2003.

Already knew? The EU Energy Tax Directive is implemented in Germany through the Electricity Tax and Energy Tax Act.

What does the package of measures for companies include?

Second relief package decided

A large part of the second package of measures is the temporary reduction in tax rates for petrol and diesel fuels. Not only citizens, but also companies from a wide range of industries are heavily burdened by the high fuel prices. With the reduction to the European minimum, the following results:

  • Gasoline tax cut: around 29.55 ct/litre
  • Diesel tax cut: around 14.04 ct/litre

But there is also a tax reduction for natural gas of 4.54 EUR/MWh or the equivalent of 6.16 ct/kg and for liquid gas of 238.94 EUR/1000kg or the equivalent of about 12.66 ct/liter.

As with the temporary reduction in VAT in 2020 through the Second Corona Tax Assistance Act, this reduction in energy tax also requires a legal basis. The amending law will apply for three months from the time it comes into force.

In addition, the EEG surcharge will be abolished on July 1, 2022 in order to take action against rising prices as quickly and efficiently as possible.

Learn more? You can read about further measures of the second relief package in the “Federal package of measures to deal with the high energy costs”.

What is the energy tax?

A consumer tax that is passed on 100 percent to the end consumer. If a tax rate is temporarily lowered, energy suppliers have the option of passing this tax reduction on to consumers in full.

What should companies do now?

Since the tax cuts relate to petrol and diesel fuels, companies should check at an early stage whether there is a need for action. It is therefore mainly users of motor vehicles who will benefit from the tax reduction. Businesses involved in the supply of fuels should check whether there are any changes in the tax declaration of the energy tax at the main customs offices that will be affected by the temporarily reduced tax rate.

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Why are energy prices so high?

There are a number of reasons why energy prices are higher than ever before. On the one hand, the demand for energy has increased. The economy recovered faster than expected in the wake of the corona pandemic, so companies quickly ramped up their demand again.

On the other hand, there are higher energy prices due to the current climate protection measures, which is not only noticeable at gas stations. If companies bring heating oil, natural gas, petrol or diesel to the market, a CO2 price has to be paid since 2021, which contributes to the increase in energy prices. Although this makes power generation from coal less attractive, if there is no alternative, the price of electricity can also rise.

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