Reduction of the EEG surcharge: will the price of electricity also fall now?

Created: 06/30/2022, 17:18

On July 1st, the EEG surcharge will be temporarily reduced to zero.

But does this really make the price of electricity cheaper?

The most important questions and answers.

Berlin – Electricity customers in Germany have had to pay the green electricity levy (EEG levy) in addition to their electricity price for over 22 years.

This should promote the expansion of renewable energies.

However, as part of the federal government’s relief packages, the surcharge will be reduced to zero on July 1 – for a limited period until December 31, 2022. This is intended to relieve households in Germany at least temporarily.

But is the price of electricity really getting cheaper now?

An overview:

Do electricity providers have to pass on the reduction in the EEG surcharge directly to their customers?

yes they have to

Both basic suppliers and other energy supply companies must pass on the price reduction to electricity customers.

For all energy supply companies that are not basic suppliers, however, there is a back door: if they can prove that the EEG surcharge plays no role in their price calculation, they do not have to pass on the price reduction.

"But that should be the case very rarely," says Martin Brandis, energy specialist at the Federal Association of Consumer Organizations.

How much savings can that make on the electricity bill?

In a household with an annual electricity consumption of 3500 kilowatt hours, the net savings amount to around 130 euros per year.

In addition, there is the VAT of 19 percent.

Makes a total saving of 155 euros, just under 13 euros per month.

But because electricity prices have been rising for months, the savings could be eaten up again immediately.

Reduction of the EEG surcharge: will the advance payment change immediately?

Energy suppliers are not obliged to change the monthly deduction due to the reduction in the EEG surcharge.

Deductions are usually only adjusted once a year – when the annual accounts come out.

"In this respect, I would estimate that the discount will remain unchanged for most consumers," says Brandis.

If necessary, there will be a refund as part of the annual statement.

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In justified cases, however, electricity customers would have the option of having the deduction adjusted early.

Customers should make their supplier credible in writing or by telephone that they have lower costs than they are currently paying as a discount.

"I'm assuming that most utilities will then comply," says Brandis.

On July 1st, the EEG surcharge will be temporarily reduced to zero.

But does this really make the price of electricity cheaper?

(Archive image) © Uli Deck/dpa

Are electricity customers protected against a simultaneous electricity price increase?

So that the end consumer really benefits from the relief, the legislator has ruled out a simultaneous electricity price increase on July 1st.

However, this does not rule out a price increase a short time later.

According to Brandis, electricity price adjustments must always be justified.

A price adjustment without reason is not possible.

Does the EEG surcharge still appear on the bill?

It could be that the EEG surcharge is still listed as zero euros on the electricity bill.

Because formally it has not been abolished, says Brandis.

It could therefore be that companies handle it this way for reasons of transparency.

How can customers see whether their electricity provider has made the adjustment?

In order to ease the bureaucracy for energy suppliers, the companies are not obliged to inform customers about the price change.

If in doubt, a look at the provider's website or a telephone inquiry will help.

At the latest on the electricity bill it should be clear whether the adjustment was made correctly.

What if electricity providers do not pass on the price adjustment?

Can consumers take action against this?

"Of course, consumers can take action against it," says Martin Brandis.

If electricity customers find out that their suppliers are not passing on the price adjustment, they can request this from their provider.

If the supplier is unreasonable, customers can, for example, contact the energy arbitration board free of charge.

What happens from January 1st?

So far, the reduction in the EEG surcharge has been limited to December 31st.

How the EEG surcharge will be dealt with from January 1st has yet to be decided politically, says Brandis.

However, he assumes that the green electricity levy will not be increased again and will soon be abolished altogether.

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