Despite billions for eeg apportionment the price of electricity remains high

Despite billions for EEG apportionment the price of electricity remains high

The billions of euros that the federal government is using to stop a sharp rise in the eco-electricity surcharge will have only a limited effect on the price of electricity in Germany.

A noticeable relief of the consumers is not in sight. At the turn of the year, some suppliers have announced price reductions, but others want to increase their tariffs. First evaluations of the Internet comparison portals Verivox and Check24 resulted in that.

According to Verivox, 45 basic suppliers have so far announced price reductions averaging 1.8 percent. For a family with an annual consumption of 4000 kilowatt hours, this would mean a relief of 24 euros. At the same time 42 basic suppliers would have communicated price increases of on the average 2.4 per cent, which corresponded to additional costs of 31 euro.

Check24 counts somewhat differently. According to the portal, 59 basic suppliers want to increase the electricity price at the beginning of next year or have already done so in recent weeks. On average, the price increases amount to 4.6 percent. For a sample household with a consumption of 5000 kilowatt hours, this means additional costs averaging 74 euros per year. A price reduction would have announced 47 basic suppliers – on average by 2.4 percent.

“The majority of electricity providers apparently see no scope for cheaper prices at the moment, despite capped EEG levy,” said Verivox energy expert Thorsten Storck. “We therefore expect electricity prices to stagnate at a high level in the coming year.”The slightly lower EEG levy would reduce the costs for a model household by around 10 euros a year. At the same time, however, the other levies and charges would increase by around 4 euros. The market observers at Check24 even say: “It will get more expensive in any case.”

The abbreviation EEG stands for the Ereuerbare-Energien-Gesetz (Renewable Energy Sources Act), the first version of which came into force in 2000. The EEG levy was introduced to promote the generation of electricity from renewable energy sources such as wind and solar power. It finances the fixed payments that green electricity producers have received for feeding their electricity into the grid up to now, regardless of the market price.

Consumer advocates are angry in view of the price development. “Although the EEG levy and procurement costs are falling, most energy suppliers are not passing on these benefits, but are going underground,” criticized Udo Sieverding, energy expert at the NRW consumer center. “At the same time, the reduction in electricity prices was intended by the federal government as a countermeasure to the CO2 price of oil and gas.” This is “doubly annoying” for consumers.

Without the state’s intervention, the levy to promote green energy would have risen to nearly 9.7 cents next year, from just under 6.8 cents this year. However, the federal government has decided to cap the levy in 2021 at 6.5 cents and in 2022 at 6.0 cents. This will cost around eleven billion euros from the federal budget. In addition, from 2021, revenue from the CO2 price for transport and buildings will be used to stabilize the EEG levy.

Electricity prices for household customers have risen sharply this year. The Federal Network Agency has calculated an average price of 32.05 cents per kilowatt hour (effective date 1. April 2020) calculated. That is 4 percent more than a year ago. Germany thus has the highest electricity prices in the EU alongside Denmark.

Somewhat differently it looks with the gas price. With on the average 6.31 cent per kilowatt hour it lies European-wide in the center field. Year-on-year, the Federal Network Agency has even calculated a slight decline. But in 2021, heating with gas is likely to become significantly more expensive. In addition to higher network charges, the new CO2 price will drive up gas bills. An initial 25 euros per ton will be charged. According to the Ministry of the Environment, this means that natural gas will become more expensive by 0.6 cents per kilowatt hour. Verivox and Check24 have calculated an increase of more than 7 percent from the price increases announced so far.

Heating with oil could also become more expensive at the turn of the year. The CO2 tax adds 8 cents to the price of a liter of heating oil. As in the case of electricity and gas, 19 percent value added tax will again be due. Who wants to avoid both, must hurry up, advises the consumer center NRW. “Only if deliveries are still made in 2020 can customers benefit from the favorable price.”With a tank filling of 3000 liters it makes in the sum a price difference of approximately 275 euro, if still 2020 instead of in the year 2021 is supplied.

The aim of the German government is to use the CO2 price to make fossil fuels less attractive and to encourage people to switch to more climate-friendly alternatives. The price rises gradually in the coming years. In order to cushion the rising costs socially, there is relief worth billions elsewhere – in the electricity price and in the commuter allowance for employees with longer commutes.

Leave a Reply

Your email address will not be published.