The price drivers in the electricity price

The energy association BDEW expects electricity prices to rise for many consumers. An appeal is made directly to the Federal Minister of Finance in Berlin.

Electricity is likely to become even more expensive for many German consumers.

Dhe energy association BDEW expects electricity prices to rise for most electricity consumers in Germany in the next year and calls for billions in relief. “In the EU-wide comparison of electricity prices, one thing becomes particularly clear: The German state asks households to pay too much for taxes, levies and levies,” said the chairman of the executive board of the Federal Association of Energy and Water Management (BDEW), Stefan Kapferer , the German Press Agency.

When it comes to the price of electricity, taxes, levies and surcharges now make up 54 percent. The electricity prices for private households have risen significantly over the past ten years as a result. Kapferer said that Federal Finance Minister Olaf Scholz (SPD) should consider massively lowering the electricity tax rate – to the minimum of 0.1 cents possible under European law.

This would cost 5.5 billion euros, but is feasible in view of the full state coffers and would relieve the budget significantly. The standard tax rate for electricity tax is currently 2.05 cents per kilowatt hour. The electricity tax alone makes up 7 percent of the electricity price. With it, the federal government earns around 7 billion euros per year.

Too many taxes and levies

The electricity price is made up of taxes, levies and surcharges as well as the network charges of the local and regional operators and transmission system operators. In addition, there are production costs and the levy for promoting renewable energies.

The price drivers for the electricity price are higher procurement costs, said Kapferer. While the companies paid an average of just over 30 euros for one megawatt hour of electricity in the delivery year 2017, they had to pay more than 50 euros this year.

In addition, fossil fuels such as coal and gas have become more expensive. There are significant price increases in emissions trading. The price for CO2 certificates has more than tripled in the past 12 months.

Falling network charges for the operation of the major power lines gave reason to expect some relief in electricity prices. The main reason is that the surcharge previously included for the expansion of offshore wind energy in the North and Baltic Seas will in future be deducted from the grid fees.

High taxes leave no room for maneuver

The transmission system operators are responsible for the electricity highways. Kapferer, on the other hand, said the effect was dampened by other factors. The amount of the offshore surcharge is to be announced on October 15, together with the amount of the surcharge for promoting renewable energies.

Kapferer also criticized that the high taxes and duties left the companies with less and less leeway. Only a good 20 percent of the end customer electricity price can be directly influenced by the suppliers. The costs from taxes, levies and levies have more than doubled since 2006.

A U-turn is necessary so that electricity generated from renewable sources becomes more attractive in the transport sector – keyword electromobility. “It is incomprehensible why the federal government is not acting here.”