EEG Equalisation Scheme Account with Negative Balance by End of June

The EEG equalisation scheme account of the German transmissions system operators as of 30 June 2012 shows a negative balance of  EUR -224,227,352.25 . At the same time last year, the balance was positive at EUR 380,084,807.10. This gives renewed rise to speculations on the size of EEG surcharge increase for next year.

In the EEG equalisation scheme account,  the German TSOs  show their feed-in tariff related proceeds (mainly from the sale of electricity and the EEG surcharge) and the respective expenses, in particular feed-in tariff payments to operators.

With revenues for the first six months of EUR 1,571,814,137.94 from the sale of renewable energy at the exchange and EUR 7,182,693,666.17 in EEG surcharges (plus a few smaller items) and payments of EUR 7,932,322,863.66 for feed-in tariff payments and EUR  1,147,068,286.85 for the new direct marketing premium, the 30 June 2012 account balance was EUR -224,227,352.25.

By end of June last year, expenses for feed-in tariffs amounted to EUR 7,124,416,277.62. This June they totalled EUR 7,932,322,863.66, which corresponds to an increase of more than 11%. In addition, costs of another EUR,85 for the new direct marketing premium pursuant to Section Section 33g EEG have been charged to the account for the first time this year (the government is in the process of trying to reign in costs). If one adds the costs for the energy directly marketed (even making allowances for the controversial market premium that includes a management feed for the operators of renewable power plants), the costs for feed-in tariffs would have been much higher, reflecting the growth of renewables, especially solar power, in the recent past.

Last year, the EEG account balance turned negative at the end of July, then showing a balance of EUR -27,399,783.98.

The EEG surcharge, the main income item for the account, has continuously risen since its introduction, and there have been warnings from several persons and institutions that the surcharge for 2013 will increase considerably (EEG surcharge for 2012: 3.592 ct/kWh). According to one recent calculation on behalf of VBW (an umbrella organisation of Bavarian employer and trade associations and individual companies) the surcharge might even rise to 10 ct/kWh in the longer term. 

With the EEG surcharge, consumers pay for the difference between the guaranteed feed-in tariffs paid pursuant to the EEG for renewable energy fed into the grids and the sale of the renewable energy at the EEX energy exchange by the TSOs. Pursuant to Section 3 para. 2 AusglMechV TSOs have to calculate and publish the EEG reallocation charge for the following year by 15 October of the calendar year.

While precise forecasts are of course difficult, it appears not unlikely that the EEG surcharge for 2013 is moving towards the upper echelon of the EEG forecast for 2013 which the TSOs made in November 2011. At the time they believed the surcharge to range between 3.66 and 4.74 ct/kWh in 2013.


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