I find the decisions made by the German government, reported by Energy Voice, to be bizarre in the extreme.

German delegates have just returned from COP27; did they sleep through the whole event?

The new government plan is clearly designed to bring in some much needed cash to fund its consumer aid measures, which are intended to offset some of the impact on ordinary citizens of the huge rises in energy prices, but the results of this badly thought out plan will be bad for consumers and for the environment.

Taxing the windfall profits of energy companies so heavily will do nothing to reduce energy prices for consumers, and could indeed push them even higher. Directly regulating the price of energy would be much more effective at protecting consumers from price rises, and not have the inefficiencies inherent in taking money out with taxes and then paying it out again as consumer subsidies. Not only consumers, but also industry would benefit from effective measures to limit energy prices.

Looking at their plan's from an environmental perspective, the penalties and incentives simply seem wrong. True, the burning of lignite, the most polluting type of coal, to generate electricity will be most heavily penalised (earnings above €82 per megawatt), but oil-based generation will be much less heavily penalised (earnings above €280 per megawatt), while solar, wind and nuclear generation will be taxed on earnings above €130 per megawatt. Where is the incentive to invest in clean energy, and why is oil being given a pass?

The German government needs to rethink this half-arsed plan.