Thursday , September 24 2020

Suppliers are raising electricity prices, although costs are falling


Many households these days have been receiving mail from their electricity suppliers. Not good news. Consumer advocates criticize rising electricity prices.

Electricity customers in Germany are facing a surge in prices. According to a comparison of the Verivox and Check24 portals, some 170 utilities have already announced they will raise prices for private customers by January 1. According to Verivox, 177 local electricity suppliers want to increase their prices by an average of 5.4 percent.

Almost 70 euros more per year

A model household with a consumption of 4,000 kWh should reckon with an additional cost of an average of 67 euros per year in regions affected by rising electricity prices. "The federal government has said it wants to free households from electricity prices, but has not yet experienced anything," said Valerian Bird, an energy expert at Verivox.

The Check24 portal, which reported 171 and increased prices since August, saw an average increase of 5.3 percent. No electricity providers have announced or announced so far. "Consumers have been paying record prices for electricity for months," said Lasse Schmid, Check24's chief energy officer. "This will not change in 2020." For an annual consumption of 5,000 kWh, Check24 calculates an average increase of 82 euros.

Also the network charges and taxes are to blame?

The portals expect numerous other electricity providers to announce price increases from January 1 in the coming days. The deadline expires next Wednesday (November 20th). Recently there have been many increases in the first quarter of 2019. Utility cited increased fees and network charges as the reason for the increase in electricity prices.

The EEG surcharge, which finances the expansion of renewable energy sources, will increase by about five percent to 6,756 cents per kWh at the end of the year. It makes up about 22% of the total cost of electricity. Charges for electricity grids, which make up less than a quarter of the total price, are rising, though by region. The majority of network operators in Germany announced an increase of about six percent according to Verivox.

The reduced prices were not passed on to consumers

According to Check24, utilities are buying electricity at an electricity exchange 28 percent cheaper than a year ago, but so far lower prices have not been passed on to consumers. Consumer advocates believe that electricity providers have an obligation to ensure price stability. "Rising electricity prices now in terms of climate protection is a completely wrong signal," NRV Consumer Center energy expert Udo Severing said at the DPA's request. Utilities "can be late in the scope of their procurement strategies, prices change so long until climate packages are attacked."

Declarations of intent in the federal government's climate package must "quickly lead to measures that make clean electricity cheaper and fossil energy more expensive," Sivering said. "It is time for a strong promise that consumer electricity prices will not rise again." Federal Economy Minister Peter Altmayer's (CDU) draft law on coal exports envisions compensation for rising output-related electricity prices. Among other things, a subsidy for transmission system fees is provided.

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