Electricity prices in the district keep rising: That's behind it

Created: 01/19/2022, 06:01

By: Raphael Scherer

Every little lamp needs its electricity.

In 2022 it became more expensive in the district than ever before.

© Imago

For new customers, electricity prices are currently higher than usual.

The Grafinger energy provider Florian Rothmoser explains why various cheap electricity providers went bankrupt - and what's next.

Grafing – Florian Rothmoser has been working in the energy company of the same name in Grafing for around ten years. But the managing director has never experienced such an increase in the price on the electricity exchange in all these years: if they ordered more, the electricity suppliers had to shell out up to four times more for a kilowatt hour of electricity than they did a year ago. “We were once at five cents or even below. In some cases it has now risen to over 20 cents on the 'spot market',” says the managing director. On the spot market, electricity is offered and sold at short notice – similar to the stock market.

The reason for the ever-increasing electricity exchange prices across Europe since last autumn: "If natural gas becomes more expensive, then the price of electricity will also increase," summarizes Grafinger.

This is because the production of industrial companies worldwide is now slowly being ramped up again after the dip caused by the pandemic.

More power is needed for that.

Rising electricity prices: Ukraine conflict and "Nord Stream 2" are also making themselves felt in the district

Florian Rothmoser takes care of the basic supply in Grafing when it comes to electricity.

© private

At the same time, according to Rothmoser, fewer renewable energies flowed into the grid in 2021 than in previous years due to the weather.

And on top of that, the Ukraine conflict and the postponed commissioning of "Nord Stream 2" are fueling the price increase, according to Grafinger.

He cannot yet predict how things will look in 2023, but personally he expects a slight increase in electricity prices over the long term.

For the time being, nothing will change for Rothmoser's long-standing customers: "We did not increase the prices in 2022," he assures.

The reason for this is that the electricity supply companies usually buy their estimated energy needs at a fixed price one or more years in advance, he explains.

Rising electricity prices: That's why the Munich public utility company is no longer accepting new customers

It only becomes more expensive for energy companies when more electricity is actually needed than was ordered at the time.

Because then the necessary electricity has to be bought at the current exchange prices, according to the managing director.

And that is currently up to ten times more.

This is particularly noticeable with a large number of new customers whose needs were not previously included: The main reason why several electricity providers such as the Munich public utility company are currently not taking on any new customers, explains Rothmoser.

"The state wanted more competition in the electricity market, which is why cheap electricity providers have sprung up like mushrooms," recalls the managing director.

The low prices, which were only secured for a short time, then caused several providers to become insolvent and dozens of customer contracts to be terminated.

Low-cost electricity provider insolvent: This happens when the previous electricity provider goes bankrupt

But nobody has to be afraid of having to sit in the dark.

"The customers of these insolvent companies then automatically end up in the basic service," says the managing director.

"We are the basic supplier in Grafing and have also gained a few customers in the process." Around 50 households in the area have recently been getting their electricity from Rothmoser - at least for the time being.

Those affected can look around for new providers on various comparison portals.

However, the prices there will be higher than what customers have been used to.

And: "The price differences are usually in the single-digit percentage range," the Grafinger points out and emphasizes the added value of a local company compared to cheap electricity providers in the distance: "A company like Stromio doesn't sponsor the EHC Klostersee or a football club."

Rothmoser is certain: new customers will have to accept higher electricity prices than usual for 2022

And what is Rothmoser's solution for dealing with the onslaught of new customers?

“We have calculated a new price for new customers.

It's more expensive than for existing customers, but we assume that we can bring the two together again next year," says Florian Rothmoser's plan.

Finally, for the year 2023, the new customers can already be included in the calculation.

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