German power tax "has not raised prices"

Industrial electricity prices in Germany have fallen by almost 30% following power market liberalisation, despite greater state subsidies for renewable energies and rising energy taxes, a study commissioned by the German environment ministry has found. According to the Izes institute, prices fell by two euro cents to €0.05 per kilowatt hour between 1995 and 2002. The findings contradict arguments made by energy-intensive firms that the Red-Green government's efforts to support green energy have threatened their competitiveness through higher electricity prices (EED 27/03/03). See environment ministry press release.

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