German household power prices unlikely to decrease despite government efforts
Clean Energy Wire
Household power prices in Germany are unlikely to fall next year despite government efforts to lower prices, according to price comparison websites. Some power companies have announced price decreases for next year, but these are outweighed by a similar number of companies that will increase prices. "The majority of electricity suppliers apparently see no scope for lower prices at present, despite the capped renewable energy levy," said Verivox energy expert Thorsten Storck. "We therefore expect electricity prices to stagnate at a high level in the coming year."
The German government decided to cap the renewable energy surcharge at 6.5 cents per kilowatt hour (kWh) next year, and to 6.0 cents in 2022, in the context of its coronavirus recovery programme. It will be financed with state subsidies to the tune of eleven billion euros to ease the burden of power costs for customers. Withouth government intervention, the levy would have risen to 9.7 cents next year, instead of staying broadly stable. German households already pay some of the highest power prices in Europe.
Verivox said 45 providers have announced a price cut averaging 1.8 percent, compared to 42 providers planning an increase averaging 2.4 percent. Rival comparison site Check24, which uses a slightly different methodology, said 47 providers plan an average price cut of 2.4 percent, while 59 companies will increase prices by an average of 4.6 percent.