Zeitschrift für Energiewirtschaft

Years after the introduction of the so-called carbon pricing of fossil fuels in Germany in 2021, politicians have still not fulfilled their promise to redistribute the revenues accruing from carbon pricing. Against this background, this article examines the social impact of carbon pricing, in particular the distributional effects for low-income private households, and presents a pragmatic proposal for the redistribution of revenues. This proposal consists of a combination of measures to gradually reduce the electricity price: on the one hand, the reduction of electricity price components such as the electricity tax and, above all, the grid fees, which are used to finance the grid expansion that is critical for the energy transition, and on the other hand, the complete abolition of the numerous levies on the electricity price. A reduction in the electricity price by more than 10 cents per kilowatt hour would be possible if these proposals were implemented and could drive forward the heat and transport transition in two ways: On the one hand, by carbon pricing of fossil fuels as a driving factor and, on the other hand, by making electricity cheaper. In times of massive financial bottlenecks in the Climate and Transformation Fund, it would be wise to use the extremely scarce funds in such a way as to simultaneously advance the energy transition and reduce the cost burden on citizens and companies. This could be achieved if the funds were used to reduce grid fees, electricity tax and levies on the electricity price, but not by a lump-sum transfer to all citizens. Politicians should therefore refrain from paying out such lump-sum transfers in favor of lowering electricity prices.