Lower Saxony premier supports ending Germany's renewables surcharge

The state premier of Lower Saxony, Stephan Weil, has expressed support for scrapping the Renewable Energy Act (EEG) surcharge, dpa reports in an article carried by the Süddeutsche Zeitung. The EEG surcharge is added to consumer bills in proportion to power consumption and provides funds to remunerate electricity from renewable sources. Weil, who is a member of the Social Democratic Party (SPD), said the current arrangement meant costs for the energy transition are being passed on to the electricity sector. "That needs to be broadened. The EEG surcharge should be abolished entirely,” he was quoted as saying.

The surcharge was projected to see its last increase in 2020, as the German government’s Climate Action Programme 2030 stipulates that revenues from the country’s planned CO2 price in transport and buildings should be used to lower the levy. But analysts have questioned whether this would be enough to cover current power market developments.