Reuters reported that Germany was going to reduce a power surcharge in order to lower the high electricity bills in 2022.
According to Reuters’ sources, Berlin plans to ease the pressure that consumers face by cutting the power surcharge by 43%, that should increase the investments in renewable energy sector.
Germany has the highest electricity prices in Europe. This is due to a variety of factors, including the subsidy schemes that were used before. Their abandoning should allow to increase the green energy investments.
Meanwhile, the development of renewable energy sources in Europe is completely dependent on gas and other traditional energy sources. The surcharge exists as a tax or withdrawal from the gas margin. This margin was a base for almost all European social program. It was also a source of cross-financing of renewable energy sources.
In the current conditions, Europe in front of a tough choice. It lost an important income source, and it is no more possible to compensate the increase in purchase prices by the growth of the retail ones, as a purchase price of $ 1,000 should cost $4-5,000 for consumers. As the exchange price-setting mechanism was launched, the market immediately tried to level the disparity.
This is why Europe is in panic and attempts to blame Russia, when, in fact, Europe is the only culprit. built this structure itself.
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