German Renewables Fee Rises 47%, Opening Government Rift

http://www.bloomberg.com/news/2012-10-15/german-renewables-surcharge-rises-47-opening-government-rift.html

Germany’s power grid operators boosted the surcharge consumers pay for funding renewable energy to a record, triggering a rift between two ministers in Chancellor Angela Merkel’s Cabinet. 

The four grid companies set the fee paid through power bills at 5.28 euro cents (6.8 cents) a kilowatt-hour in 2013, up 47 percent from 3.59 cents now. Economy Minister Philipp Roesler wants to lower a federal electricity tax to help counter the increase, he told reporters today in Berlin. Environment Minister Peter Altmaier wants to offer consumers free advice on saving energy instead. 

Merkel’s government is seeking to prevent a voter backlash against raising energy costs before the next general election in the autumn of 2013. Last week, Altmaier set out plans to cap subsidies for wind, biomass and solar power that have surged since 2004 when the government guaranteed above-market prices for electricity generated from clean sources.