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18 Oct 2023, 13:28
Carolina Kyllmann

Higher German grid fees to raise consumer electricity costs in 2024 – energy company

Clean Energy Wire

Household consumers in Germany could be hit by rising electricity costs next year as distribution network operators increase their grid fees, energy software company Ene't said. Costs for a single household (annual consumption of 1,500KWh) could rise by an average of 8.7 percent to 219 euros as a result of planned grid fee increases, according to Ene't's calculations. The company evaluated the prices of 235 distribution system operators (DSOs) which have already published their price sheets, with a combined network coverage of almost 86 percent. However, charges are provisional and could change before the turn of the year. In 2023, grid fees increased by almost 20 percent on a weighted average compared to 2022, according to Ene't.

Distribution grid fees can vary considerably between individual regions, depending on the capacity of the local grid, population density, and necessary load management in the region to keep the grid stable. In the second half of 2022, grid fees accounted for more than 20 percent of the price German households paid for electricity, including metering and associated services. Germany’s shift to a renewable energy future requires massive investments into the country’s power network. The costs are largely borne by consumers, who pay a grid fee included in their power bills.

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