Govt should introduce further relief as household energy prices rise – BDEW

The head of energy industry association BDEW has called on the government to examine further measures that could relieve households amid rising energy prices. “Since the beginning of last year, wholesale prices for electricity have quadrupled and those for gas have almost quintupled,” said Kerstin Andreae. While it takes some time for these prices  to trickle down to household consumers, the tariffs will increasingly reflect the situation at the wholesale market, she said. After the decision to abolish the renewables EEG levy to lower power prices, the government should now take further measures to ease the burden on citizens, such as lowering the electricity tax and the value-added tax on power and gas, she explained.

According to the BDEW’s analysis, the average household electricity tariff in 2022 is 37.14 cents per kilowatt hour (ct/kWh). This is 15.5 percent more than last year’s annual average of 32.16 ct/kWh. The main reason for the increase is higher procurement costs due to the energy crisis in Europe, which has been exacerbated by Russia’s war against Ukraine. Household power prices in Germany are among the highest in Europe. Before the crisis, average wholesale electricity prices had been in decline in recent years, but surcharges, taxes, and grid fees have raised the bill for Germany's private households and small businesses.

In addition to abolishing the renewables levy, Germany’s government has also agreed on a wide-ranging relief package to help shield citizens from rising energy costs, including a 300-euro tax bonus for the employed, a fuel tax cut, and a 9-euro monthly public transport ticket.