From January 1, a huge increase in the price of electricity in Germany

26.11.2022. / 16:30

BERLIN – The German government has made a decision to limit the price of electricity and gas, which will be valid from January 2023 to April 2024.

Photo: Pixabay

Previously, more than seven million households were notified of huge electricity price increases since the New Year, writes DW.

As it is stated, the Germans have the most expensive electricity in the EU anyway, and these days millions of households received a notice about the increase in electricity prices starting from the New Year.

Some increases are drastic, so Rheinenergie from Cologne will charge about 55 cents per kilowatt hour for electricity from January, which is an increase of almost 130 percent.

In addition to Cologne, the price increase is substantial in Munich as well, where a kilowatt hour will cost 619 cents from the New Year. It used to be 25 cents.

“The new year begins with a huge wave of electricity price increases”said Torsten Štork, an energy expert at the price comparison portal Verivoks.

Cologne-based Rheinenergie refers to high procurement costs:

“Compared to the previous year, the prices on the electricity exchanges increased by more than 300 percent, at the peak more than ten times. In addition, the network fee is also increasing”.

The price comparison portal Check24 writes that “about 7.3 million households” have been affected by the increase in electricity prices in Germany since the New Year.

The increases amount to an average of 60.5 percent.

Price increases at the beginning of the new year are very different across Germany, so in the City Electric Power Company in Potsdam (Brandenburg) the price increases by about 21 percent – to 46.5 cents per kilowatt hour.

At MVV Energie in Mannheim (Baden-Württemberg) since January, electricity costs slightly less than 45 cents instead of the previous 27 cents, while the East German energy supplier EnviaM (Kemnitz, Saxony) will charge 48.1 cents in the future, which is 20.1 cents more than earlier.

According to Check24 calculations, a household with an annual consumption of 5,000 kilowatt hours paid an average of 29.4 cents in November 2020, and 31.6 cents a year later. Currently, the average is 42.7 cents

Taxes and surcharges make up slightly more than half of the price of electricity per kilowatt hour, and this is one of the reasons why the price of electricity in Germany is so high compared to other EU countries, according to DW.

One of the main reasons for the latest extreme increase in electricity prices is considered to be the extreme increase in gas prices, as a result of the war between Russia and Ukraine.

Yesterday, the federal government passed the announced draft law, i.e. a series of measures limiting gas and electricity prices, thus paving the way for parliamentary decisions.

According to the draft law, from January 1, 2023, households and small businesses would receive the basic electricity quota of 80 percent of consumption from 2021 at a fixed gross price of 40 cents per kilowatt hour, and the rest at the market price.

Industrial companies will receive a guaranteed net price of 13 cents per kilowatt hour for a basic quota of 70 percent of consumption in 2021.

When it comes to gas, households and small and medium-sized enterprises will receive a guaranteed gross gas price of 12 cents per kilowatt hour for 80 percent of consumption from 2021.

These restrictions on electricity and gas prices will be valid until April 2024. Citizens and companies will be relieved retroactively for January and February, that is, the calculation will be made in March and for the previous two months.

The relief, that is, the limitation of the price of electricity will be partially financed by taxation of the so-called additional profit that companies make on the electricity market.

This applies to all electricity producers, including nuclear power plants, coal-fired ones and producers of green electricity from wind and solar, which have recently benefited from high prices on the stock market.

This deduction of additional profit in the amount of 90 percent will be carried out from December 1, and this practice should end no later than April 30, 2024, writes DW. Agencies


Source: Capital.ba – Informacija je capital by www.capital.ba.

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