The Limited Times

Now you can see non-English news...

The federal government spends billions on reducing electricity tariffs

2022-10-05T16:38:25.440Z

The inflation rate threatens to remain in double digits - and electricity customers are suffering from persistently high network charges. The federal government is now taking the first steps to lower prices.



Enlarge image

Overland line in Saxony: relief financed by EEG account

Photo:

Jürgen Lösel/ picture alliance/ dpa

In the fight against rapidly rising energy prices, the federal government is dampening electricity tariffs with billions in aid as a first step.

Economics Minister Robert Habeck confirmed to the Reuters news agency that almost 13 billion euros would be granted to stabilize the fees charged to households and industry for using the transmission networks at the current level.

"We are now making sure that these cost increases are absorbed and thus prevent an additional burden for industrial companies, medium-sized companies and consumers," said the Green politician.

Without the help, the fees would have tripled.

The network operators had previously stated that the fees would remain at least uniform nationwide at a good three cents.

The prerequisite is that the federal government stabilizes the price component through its relief packages, increases not excluded.

The four transmission system operators Amprion, Tennet, 50Hertz and TransnetBW calculate the amount of the fee.

Other fees threaten to rise

For household customers, the costs for the transmission grids account for just under ten percent of the total electricity price.

For industrial customers from the chemical or steel industries, for example, it is up to a third.

The background to the increased costs are the major imbalances in the European power grid, for example due to the failure of many French nuclear power plants.

The costs of using charcoal in reserve are also reflected in the charges.

The stabilization of the grid therefore causes significantly higher costs than in the past.

In addition to the base electricity prices, which have already risen sharply, there have recently been signs of rapidly increasing network usage costs.

On the one hand, these consist of those for the large transmission lines and, on the other hand, those of the local distribution networks.

Together they are added to the electricity price.

In the case of the transmission networks, it was recently a good five billion euros, which would have increased to around 18 billion.

This is prevented by the subsidy of almost 13 billion euros.

The publication of the distribution grid fees is due next week, which are also expected to rise and will affect households more than industry in percentage terms.

In industry circles it was said that this increase could affect private customers with around four cents per kilowatt hour.

That would be more than 100 euros a year for a larger household if the federal government did not lower the fees here as well.

In the shadow of the gas price development, electricity prices also rose sharply, hitting large consumers such as the steel and aluminum industries hard.

In its third relief package at the beginning of September, the government had therefore already announced: »In order to relieve households of electricity prices, an electricity price brake will be introduced and the increase in network fees will be curbed.«

Habeck said the billions would initially be taken from the account for the promotion of renewable energies (EEG account).

There are around 18 billion euros that are currently not needed for subsidies for wind or solar energy.

Due to the high electricity prices, construction and operation are currently profitable even without subsidies.

Apr/Reuters

Source: spiegel

All business articles on 2022-10-05

You may like

Business 2022-06-19T17:40:53.484Z

Trends 24h

Latest

© Communities 2019 - Privacy