“Exit from the surcharge list”

The Energiewende’s costs cannot be entirely levied on power customers if Germany’s energy transition is going to succeed, Robert Busch, managing director of the Association of Energy Market Innovators (BNE), writes in a guest commentary for Handelsblatt. The main reasons for rising power prices in Germany are the increased Renewable Energy Act (EEG) surcharge and higher grid fees. These, together with other taxes, pushed the power price’s fixed proportion to 75 percent, Busch explains. “The idea to finance the Energiewende via the power price leads into a cul-de-sac,” he writes. Fulfilling the Paris Agreement’s climate targets means the renewables’ share in heating has to grow significantly, but further surcharges could prevent customers from turning away from fossil heating fuels and therefore damage climate protection, Busch explains. “A way out of this dilemma could be to expand the EEG-surcharge to final energy consumption in the heating sector,” which would allow customers to save money if they invest in green heating technology, he writes.

For background, read this CLEW interview with Robert Busch and the CLEW factsheet What German households pay for power.