BDEW: German Household Electricity Costs Fall 1% in 2015 – 3,500 kWh/year for EUR 84.02/month or 28.81 ct/kWh

Electricity prices for households fell slightly for the first time since 2000, first results of a survey show, the Federal Association of the Energy and Water Industry (BDEW) reports. According to BDEW, a 3-member household with an electricity consumption of 3,500 kWh has to pay EUR 84 per month (28.81 ct/kWh) compared with EUR 85 (29.14 ct/kWh) in 2014 for electricity. This includes 52% in state induced price elements.

Electricity prices for households declined on average by 1% compared with the previous year, BDEW says, citing lower procurement costs and slightly lower state induced price components. The average price per kWh decreased to 28.81 ct/kWh in 2015 from 29.14 ct/kWh in 2014. BDEW does not provide further details on the development of coal, oil, gas or other fuel prices in the relevant period.

BDEW names in particular the slightly lower surcharge for the support of renewable energy (EEG surcharge), which amounts to 6.17 ct/kWh after 6.24 ct/kWh in 2014, as well as the lower offshore sucharge (for an overview on taxes and duties on electricity, please see here). The average household pays roughly EUR 18 in support of renewable energy sources per month, BDEW says. As always, this figure only includes direct payments as part of the household’s electricity bill (and not payments due to electricity price related general price increases).

BDEW provides the following table (in German) on the development of household electricity prices between 1998 and 2015, for 3,500 kWh/year, in ct/kWh.

BDEW Overview Household Electricity Prices

BDEW Overview Household Electricity Prices

Energy procurement and sales, i.e. the elements energy providers can influence, only account for 25% of the costs, according to BDEW. In other words, those 25% are determined by markets, whereas the other 75% are either set by the state (e.g. taxes, surcharges) or regulated by the state.

The association points out that apart from procurement costs and state induced price elements network charges are the third main component of the electricity costs. Costs vary, partly very much, BDEW says. They are subject to approval and are supervised by the regulatory authorities with regard to cost-efficiency. In many regions network charges rose due to expansion and upgrade measures. Presently, they account for approximately 23% of the electricity price, BDEW says.

Source: BDEW

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