Germany mulls scrapping energy bill surcharge early as prices rise

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Germany mulls scrapping energy bill surcharge early as prices rise
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The German government may scrap this year a surcharge on electricity bills used to support renewable power, to ease the strain of rising energy costs on millions of households, Social Democrat (SPD) co-leader Lars Klingbeil said on Saturday.

Germany's three ruling parties agreed in their coalition deal presented in November to abolish the so-called EEG fee on electricity bills from Jan. 1, 2023.

"We're now examining whether it can be brought forward," Klingbeil said on the sidelines of a meeting of the SPD, the party of Chancellor Olaf Scholz.The surcharge was cut by 43% from Jan. 1 but is still expected to cost households an average 222 euros this year. Klingbeil said the government had to do more to support consumers facing soaring costs for heating and lighting, hence the talks between the SPD and its junior coalition partners.Some 4.2 million German households will see their electricity bills rise by an average 63.7% this year while 3.6 million face gas bills 62.3% higher than in 2021 as suppliers pass on record wholesale costs, industry data suggests.

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