Power-saving households “punished” with higher costs

German households that reduce their power consumption are being “punished” by paying relatively more for every unit they use, energy think tank Agora Energiewende* says in a press release. "Poor or  thrifty power consumers are faring comparatively worse when it comes to power prices," Agora head Patrick Graichen says. The reason for this was that the basic charge, which includes grid fees, is paid by all consumers irrespective of their consumption levels. Basic charges are on the rise, whereas kilowatt-hour (kWh) rates stagnate or decrease, the think tank says. A household consuming only 1,000 kilowatt hours (kWh) per year pays up to 15 cents per kWh in grid fees while an average consumption of 4,000 kWh per year roughly halves fees per kWh to only 7 cents. "From a social and ecological perspective, this is extremely questionable", Graichen adds. 

Find the press release in German here.

See the CLEW factsheet What German households pay for power for background.

*Like the Clean Energy Wire, Agora Energiewende is a project funded by Stiftung Mercator and the European Climate Foundation.