Utilities to Considerably Raise Electricity Prices for 2011

At least 21 utilities are planning to increase electricity prices considerably as of 2011, Süddeutsche Zeitung writes. The paper is referring to a still unpublished survey carried out by the German Renewable Energy Federation (Bundesverband Erneuerbare Energien – BEE).

According to the report, the increase is higher than could be justified solely by the increase of the EEG reallocation charge for 2011.  BEE is the umbrella organization of the associations for renewable energies in Germany.

Pursuant to the Renewable Energy Sources Act (EEG), fixed feed-in tariffs are paid. Feed-in tariffs vary with the generation capacity of the installations and the type of renewable energy source. Grid operators can pass on feed-in tariff costs to the end-consumer (so-called EEG reallocation – “EEG-Umlage”). As recently announced, the EEG reallocation charge will increase from 2.047 Cent/kWh in 2010 to 3.53 Cent/kWh in 2011. The increase can be largely attributed to the great number of new PV installations.

BEE reportedly calculated that the EEG reallocation leads to additional costs of EUR 59 for the average household with an electricity consumption of 4,000 kwh per year. Almost all of the utilities announced to raise prices by a further EUR 10 to EUR 30.

Source: Süddeutsche Zeitung

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