VIK: Energy Costs for Industrial and Commercial Consumers will Rise 9% in 2012 – EEG 2012 Market Premium Costly

Electricity costs for its members will rise by 9% on average in 2012, VIK, the association that represents the interests of industrial and commercial energy consumers, believes. The shift in the German energy policy after the Fukushima nuclear disaster causes price increases, negatively affects network stability and reduces the electricity quality for its members, VIK says.

VIK welcomed that the EEG reallocation charge will only slightly rise in 2012. With this surcharge that is added to the electricity bill, consumers pay for the difference between the fixed feed-in tariffs for renewable energy in Germany paid pursuant to the Renewable Energy Sources Act (EEG) and the market price of this energy. The association also welcomed the fact that the special equalisation scheme for energy-intensive companies that leads to a lowered EEG surcharge will apply to more companies when the revised EEG 2012 will enter into force on 1 January 2012, lowering the eligibility thresholds.

VIK, however criticised the new market premium that shall promote direct marketing of renewable energy under the EEG 2012. According to the EEG 2012, the optional market premium will be calculated as the difference between the EEG feed-in tariff and the monthly ex-post average price at the energy exchange and a management fee that differs with respect to the various forms of renewable energy. The management fee shall cover transactional costs like the cost for the listing at the energy exchange and other trading related costs as well as the costs for forecast errors regarding the actual amount of energy fed into the grid. The market premium will not lead to an improved feed-in situation of intermittent renewable energy, but only result in (costly) extra gains for renewable generation operators, VIK claims.

VIK is also concerned that the EEG surcharge will have to be paid as of 2012 for electricity generated in industry-owned power plants that supply the production sites of the companies that generate the electricity. The association favours the cogeneration technology, calling it reliable and relatively low-cost. VIK therefore hopes for improvements in the promotion of cogeneration by an outstanding amendment of the Combined Heat and Power Act (KWKG), demanding that the priority of input by renewable energy sources over electricity generated in cogeneration plants should be abolished.

Source: VIK

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1 Response to “VIK: Energy Costs for Industrial and Commercial Consumers will Rise 9% in 2012 – EEG 2012 Market Premium Costly”

  • So the reason that the EEG charge will see only a small increase is that the underlying price of electricity will tick up almost 1 euro/kW-h, instead of continuing the –0.35 euro/kW-h downward trend of 2009-11? And the cost of the feed-in tariff will be spread over more kW-h’s, by including the CHP generation?

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