Draft Bill for Reduction of the Management Premium published by BMU

On 20 July 2012, the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (Bundesumweltministerium, BMU) published a draft „Ordinance regarding the amount of management premium for electricity from wind energy and solar energy”. This draft contains a reduction of management premium for wind (onshore and offshore) and solar energy.

The management premium is an element of the market premium that producers of renewable energy may receive if they do not claim feed-in tariffs, but market the electricity themselves (Section 33g EEG). The management premium shall cover transactional costs like costs for the listing at EEX, structuring costs and profile service costs and other trading related costs.

At the time of introduction of  market premium model in January 2012, the German legislator estimated that such profile costs would amount to 5.8 €/MWh. But according to latest scientific studies these costs declined to 2.5 €/MWh. With the draft ordinance the BMU wants to reduce windfall profits.

According to the draft ordinance the management premium shall be reduced as follows:

  • 2013: from 1.0 cent/kWh to 0.6 cent/kWh
  • 2014: from 0.85 cent/kWh to 0.45 cent/kWh
  • 2015: from 0.7 cent/kWh to 0.3 cent/kWh

These changes shall enter into force on 1 January 2013.

The BMU has started a consultation process on the draft. Federal states and associations are invited to comment on the draft until 1 August 2012.

Source: BMU

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