Cutting the electricity tax is the latest twist in a fierce debate in Germany over whether renewables support should be hammered to protect electricity consumers.

“Of course, due to the wish of the states this will be discussed further,” Merkel’s spokesman Steffen Seibert said during a government press conference.

Just before that, Bavarian state premier Horst Seehofer told news magazine Der Spiegel that he now supports proposals by the opposition Social Democrats and Greens to lower the power tax, after talks failed last week between Merkel and state premiers about a government proposal to rein-in power prices by harsh cuts to renewable feed-in tariffs.

Seehofer