BDEW: German Household Electricity Costs Fall by 1.4% – 52% State Induced Price Elements

The Federal Association of the Energy and Water Industry (BDEW) confirmed information provided earlier in April 2015, saying electricity prices for households declined by 1.4%. According to the latest BDEW information, an average household with an electricity consumption of 3,500 kWh has to pay a little under EUR 84 per month compared with EUR 85 in 2014 for electricity. This includes 52% in state induced price elements.

Energy procurement costs decreased again because of the lower prices at the electricity exchanges, however, they were not the only element that determined the electricity costs for final customers, BDEW stressed. The elements energy providers can influence, i.e. energy procurement and sales, only accounted for 25% of the costs, the association said.

The largest cost factor (52%) are taxes and duties levied by the state sector. While electricity customers had to pay EUR 2.3 billion in taxes and duties with their electricity bills when the energy market was liberalized (in 1998), the total had meanwhile risen to EUR 32.2 billion, BDEW pointed out, adding that the renewable energy surcharge (EEG surcharge) was the biggest item (for 2015 it amounts to 6.17 ct/kWh).

Other cost elements are the

  • CHP surcharge (KWK Abgabe)
  • Concession fee (Konzessionsabgabe)
  • Section 19 para 2 StromNEV surcharge for network fee reductions for energy intensive companies (Umlage nach § 19 Abs. 2 StromNEV)
  • Offshore surcharge (Offshore-Umlage)
  • Surcharge for interruptible  loads (Umlage abschaltbare Lasten)
  • Electricity tax
  • VAT

The third biggest price component are network charges. Costs vary considerably depending on the region, BDEW said.  In many regions network charges rose due to expansion and upgrade measures. Presently, they account for approximately 23% of the electricity price, according to BDEW.

Source: BDEW

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