On July 5, the Federal Cabinet approved the draft budget for 2024. The item of the so-called energy tax peak compensation was deleted. This provides relief for energy-intensive companies whose energy tax burden exceeds the relief on pension insurance contributions. Eligible companies receive a refund of up to 90 percent of the energy and electricity tax.
"Energy prices continue to be far too high by international standards, and in addition the relief provided by the energy price brakes expires at the end of the year, with deindustrialization in Germany in full swing. Either the federal government closes its eyes to this or consciously accepts that thousands of medium-sized companies no longer have a chance in Germany as a business location," explains Christoph René Holler, spokesman for the medium-sized association "Bündnis faire Energiewende" (BfE).
the cancellation of the energy tax peak compensation is a further blow in the face for thousands of industrial companies in Germany.
"What else does the federal government actually want to impose on our medium-sized industry? Basic business knowledge is enough to calculate that production in Germany is no longer competitive. The slide effect has long since begun. Although companies want to stay, they no longer have any other chance than to produce where energy is still affordable."
The managing director of VEA - Bundesverband der Energie-Abnehmer e.V. Christian Otto said in a press statement on July 7, 2023: "The energy-intensive SME sector is willing to take the path to climate neutrality, but for this the companies need reliable framework conditions. As recently as Monday, we were still wrangling with other business representatives in the BMWK over the extension of the bridge electricity price to medium-sized companies that want to decarbonize their heating processes in the short term. And on Tuesday, the abolition of the peak compensation for energy and electricity tax hit us and SMEs completely unexpectedly. This is a shock and a bitter setback for Germany as a business location. A reliable economic policy looks different. For many companies, this is the straw that breaks the camel's back; politicians are gambling away confidence. I have spoken to many entrepreneurs about this in recent days. The general tenor is to stop investing in Germany. This is because a minimum level of investment security is needed. Investments that are so urgently needed right now on the road to decarbonization. With the abolition of the electricity tax peak compensation, the very energy source that is making decarbonization through electrification possible to a large extent in the first place is now becoming even more expensive. I lack any understanding for this and it will lead to Germany not achieving its climate targets."
