A variety of reasons are contributing to the increase in power prices experienced by German families. According to a dpa story published by Die Zeit, growing procurement costs for energy companies, the rising price of CO2 certificates, which has more than quadrupled in the past two years, and high wholesale gas prices have all conspired to drive up power prices even more. Deutsche Energiepool in Lower Saxony, a first small gas supplier, chose to cancel client contracts owing to rising expenses, according to the German newspaper WirtschaftsWoche.
The company also halted its national delivery of natural gas. The price of home energy has already hit a record high, with a kilowatt-hour presently costing an average of 30.54 cents – an increase from 28.65 cents a year earlier – for a kilowatt-hour.
“At the moment, the lowering prices of renewable energy are insufficient to compensate for these consequences,” said Kerstin Andreae, president of the German Association of Energy and Water Industries (BDEW). The BDEW is advocating for a decrease in electricity taxes and surcharges in an effort to alleviate the burden placed on customers. In addition, Andreae stated that “for every 100 euros in power costs, more than 50 euros are caused by the state.
” Between 2010 and 2020, the burden placed on energy users by taxes, levies, and surcharges grew by almost 70%, according to the Energy Information Administration. The renewable energy fee, which is now 6.5 cents per kilowatt hour, is anticipated to decrease to six cents per kilowatt hour by 2022.
According to Philipp Litz of the Agora Energiewende think tank, fast growth of renewable energy sources is the most effective strategy to combat growing power prices. It would be necessary for a new federal administration to treble the expansion rates for wind energy and photovoltaics within the first 100 days of taking office. “This is critical to meeting climate change objectives while also assisting in lowering the cost of power.”