The price increase has little to do with demand or markets, but almost everything to do with government interference. According toStromreport, “Taxes, charges and levies have tripled since 2000 [from 5.19 to 16 cents]. In total, German government charges now account for more than half of the electricity price [52.5%].”
Electricity becoming a luxury
Annually hundreds of thousands of German households see their power cut off due to unpaid power bills. For example in 2018, theTagesspiegel here reported: “In the past year, almost 344,000 households in Germany had their electricity turned off. This is according to the monitoring report of the Federal Network Agency on the electricity market.”
Of course the high prices hit the poor the hardest.
More price hikes in 2020
And things are not going to improve for Germany’s overburdened power consumers in 2020.Stromreportwrites that 403 suppliers have already raised electricity prices by an average of 5.3% this year already, bringing the price to a whopping 30.43 cents per kilowatt-hour. “A 3-person household currently pays almost 89 euros for its electricity. That is 27% more than 10 years ago [69.09 euros].”
Now comes the CO2 charge
The price in 2020 is expected to reach 31.47 cents per kilowatt-hour. Also the wholesale prices for electricity are expected to rise in 2020, due to “rising CO2 prices”…”which will make electricity from coal and gas more expensive on the electricity exchange,” saysStromreport.
Another major component of the German power price are the green energy feed-in tariffs for power coming from, for example, wind and sun. German consumers pay 6.756 cents for kilowatt-hour.