German household electricity costs are among the highest in Europe. Liens and taxes have been driving up the price for years. However, there is clear caution for electricity grid costs for 2021.
Bonn (dpa) – The so-called network charges on the electricity bills of private households are expected to increase slightly next year. The Federal Network Agency determined a nationwide increase of 0.5 percent in one sample.
For a domestic customer with an annual consumption of 3,500 kilowatt hours, the utility grid costs increase from 7.85 to 7.89 cents per kilowatt hour. This arises from the calculations of the Federal Network Agency, which are available to the German Press Agency. Network rates remained “almost constant at the national average,” according to the analysis.
Grid rates represent a good fifth of the price of electricity for domestic customers. They are used to finance the construction and operation of power lines, masts and substations, but also to cover the costs of emergency measures in case of bottlenecks in the network. According to figures from the networking agency, they have increased dramatically in recent years, by a good 20 percent since 2014.
Network charges vary in Germany. According to calculations by the comparison portal Check24, a household with an annual consumption of 5,000 kilowatt hours in Schleswig-Holstein will have to pay 557 euros VAT included next year. In Bremen, however, it is only 302 euros. Check24 determined the largest increase at 9 percent for Berlin. There, the model home has to pay 31 euros more per year. In Bavaria, on the other hand, network rates will drop by 5 percent, which means a saving of 22 euros. All figures are provisional, as network operators will not publish final charges until January 1, 2021.
There will be relief in the price of electricity in 2021 with the EEG surcharge. The federal government has capped the consumer’s contribution to promoting green electricity to 6.5 cents next year and 6.0 cents in 2022. That costs about 11 billion euros from the federal budget. Without this subsidy, it would have risen to 9,651 cents per kilowatt hour in 2021. This year, the rate is 6,756 cents.
It is not yet possible to predict what effects the developments in grid rates and the EEG surcharge will have on the price of electricity for consumers in the coming year. Suppliers who want to increase their prices on January 1 must announce it before November 20. According to Check24, 15 core providers have made or announced price increases since August. On average, 5.8 percent. About 650,000 homes are affected.