Re-elected Merkel to address energy costs

German Chancellor Angela Merkel was re-elected for a third term on Sunday and said her first post-election priority will be tackling surging energy costs that have resulted from her plan to mothball nuclear reactors and more than triple the share of renewable sources.

Germany’s industry federation, BDI, has called for change in the government’s energy policy, warning that the $1.44trn dash for wind power, solar and other renewables is pushing power costs to levels that “endanger German competitiveness”.

Electricity costs 30 per cent more than in the rest of Europe, and twice as much as in the US.

The energiewende policy has been criticised for putting a disproportionate burden on the German taxpayer. Electricity from renewable energy sources is partly financed through an extra charge paid by electricity customers; the more environmentally-friendly electricity being generated, the higher the charge.

Meanwhile exemptions have been granted to many companies, particularly those in energy-intensive industries that are internationally competitive.

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