No sign of electricity and gas price hikes after end of govt subsidy, CO2 price increase – Verivox
Clean Energy Wire
The discontinuation of the German government's electricity grid subsidy, as well as a rise in the national CO2 price for heating have not translated into bigger bills for new consumers, according to energy tariff comparison portal Verivox. This was largely due to lower wholesale prices, and the fact that local basic suppliers had not yet passed on higher costs to consumers. In the past 12 months, electricity prices had dropped 38 percent, and gas prices by 49 percent for new contracts, according to Verivox. “Although electricity grid fees rose more than expected at the turn of the year […] the offers from national electricity suppliers have not become more expensive,” Verivox's Thorsten Storck said. “The companies’ procurement costs are lower than a year ago, which has offset additional costs so far.”
Although the analysis found that some regional providers did increase their prices at the start of the year, most did not, with an average increase of 5 percent for electricity and 2 percent for gas. “However, by the second quarter at the latest, the full VAT of 19 percent will be applicable to natural gas, which corresponds to a price increase of around 11 percent,” said Storck.
The decision to scrap the electricity grid subsidy comes on the back of a court ruling which declared part of the federal government’s budget unconstitutional. Falling energy prices have helped to reduce inflation for households in Germany, though the number of households living in “energy poverty” has risen steeply since the onset of the European energy crisis in 2022.
