Here’s how Germany will cut electricity tariffs
Germany wants to reduce the price surcharge in bills linked to support for renewable energy. Alessandro Sperandio's article
After the Italian interventions to try to 'sterilize' in some way the increases in energy bills due to the sharp rises in raw materials, Germany is also thinking of easing the pressure on consumers: according to reports from Reuters , Berlin intends to cut the increase in energy tariffs – which helps finance investments in renewable energy – of 43% next year.
CUTTING AND COMPENSATION
The renewable energy support surcharge paid to producers is an important contribution to consumers' electricity bills. It will be reduced to about 3.7 euro cents per kilowatt hour (kWh) in 2022 from 6.5 cents in 2021, Reuters sources say, adding that the government will compensate for the loss with a contribution of 3.25 billion euros.
WHAT THE GOVERNMENT WILL DO
The news is expected to be officially released on October 15 and is part of political moves to try to limit the burden of the surge in wholesale electricity prices. Energy prices are rising globally due to increased demand in conjunction with the post coronavirus recovery and due to reduced supply and transportation and storage problems.
THE PRICES OF ELECTRICITY IN GERMANY
Germany has the highest electricity prices in Europe, partly due to previous subsidy schemes, but has phased out them in favor of supporting new investments in green energy.
HOW MUCH IS THE EXTRA CHARGE FOR RENEWABLES
The renewable supplement, called EEG, was introduced to help with the costs of transitioning to wind and solar energy and is being collected by transmission grid operators. It currently makes up one fifth of customer bills.
COSTS IN 2020
A typical German household has seen bills rise 9.3% over the past 12 months to a record 1,255 euros for 12 months in October, according to the Verivox pricing portal.
In 2020, the increase cost consumers 24 billion euros. The EEG was reduced by 3.9% in 2021 to help lift the economy from the COVID 19 crisis.
(The article was published on Energia Oltre )
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/germania-prezzo-elettricita-sostegno-rinnovabili/ on Fri, 15 Oct 2021 10:04:54 +0000.