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Federal government cancels climate fund subsidy: municipal utilities increase electricity prices

2024-02-16T06:21:01.693Z

Highlights: Federal government cancels climate fund subsidy: municipal utilities increase electricity prices. Tariffs fell in January and rose in April – albeit only moderately. This is due to an increase in network fees, which the failed federal climate fund should have cushioned. The increase means additional monthly costs of 2.90 to five euros for a two-person household; if four people live in the household, the additional monthly burden is between four and 7.40 euros. “Now we are no longer with the very cheap providers,” admitted Holzkirchen Mayor Christoph Schmid.



As of: February 16, 2024, 7:09 a.m

By: Andreas Höger

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That's why electricity is becoming more expensive: At a press event, municipal utilities managing directors Stefan Hafner (l.) and Albert Götz (r.), together with Mayor Christoph Schmid, explained the background to the price adjustment in April.

© THOMAS PLETTENBERG

Up and down: When it comes to electricity prices, the Holzkirchen municipal utilities are forced to go up and down.

Tariffs fell in January and rose in April – albeit only moderately.

This is due to an increase in network fees, which the failed federal climate fund should have cushioned.

Holzkirchen

– 1.74 cents, that doesn’t sound like much.

But this linear increase in all electricity tariffs as of April 1st remains an increase that “we would have liked to have saved,” emphasized Stefan Hafner, co-managing director of the municipal utility alongside Albert Götz, at a press conference on Thursday.

Electricity quotas were seriously secured last year, the calculation was completed and the reduction was announced in January with the legally required six-week lead time.

Then the federal government’s “financial policy trick” (Hafner) with the climate and transformation fund collapsed in November.

“At the wrong time for us,” says Hafner.

Suddenly 5.5 billion euros were missing, which the federal government wanted to use to halve the increase in network fees in electricity prices.

Instead of 3.12 cents, providers have to add an average of 6.43 cents per kilowatt hour.

“We also had to react,” says Hafner.

The additional costs of the first quarter cannot be passed on because a price change must always be announced in good time.

“We bear this ourselves.”

However, from April onwards, the municipal utilities will pass on the increased network fees proportionately to around 10,000 electricity customers.

The increase means additional monthly costs of 2.90 to five euros for a two-person household;

If four people live in the household, the additional monthly burden is between four and 7.40 euros.

“That’s not the world,” says Hafner.

But the newly necessary price change is costing the municipal utilities money (letters), unsettling customers and damaging their image.

Large providers and nationwide electricity discounters with a short-term procurement strategy would have more leeway in their pricing policy.

“The low-risk purchasing policy is now falling on our feet,” sighs Mayor Christoph Schmid, chairman of the municipal utilities supervisory board.

For a long time we were able to offer relatively attractive prices.

“Now we are no longer with the very cheap providers,” admitted Schmid.

“We are annoyed by the poor planning ability,” adds Hafner.

He can understand if consumers are confused when it is said that electricity prices are falling and then there are increases.

“As an electricity provider, we are exposed to some competition,” says the managing director.

They also want to use the opportunity of the upcoming price increase to underline the special importance of a regional supplier.

“The municipal utilities are essentially community utilities,” emphasizes the town hall boss.

Customers have short distances and fixed contact persons.

Technicians are there quickly.

“We hardly have any power outages,” emphasizes Schmid.

Last but not least, the sale of electricity also serves to offer citizens added value in their local environment.

The municipal utilities, a wholly owned subsidiary of the market town, operate the ice stadium and the Batusa swimming pool and are committed to the geothermal energy project for sustainable energy.

A lot of money is currently being invested in expanding the district heating network, adds co-managing director Götz.

“We are making progress,” says Schmid, “but we also need money to be able to finance these investments.

They want to offer something, “we hope for the solidarity of our electricity customers.”

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Source: merkur

All news articles on 2024-02-16

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