Energy - Grid agency expects electricity prices to remain high
The President of the Federal Network Agency, Klaus Müller, expects electricity prices for consumers to remain high. "Wholesale prices for electricity have fallen significantly compared to 2022. Nevertheless, the price level is higher than before the Russian war of aggression. This will not change any time soon," Müller told the Rheinische Post newspaper. "The era of cheap energy is over, at least as long as we continue to consume large quantities of conventionally generated energy."
The head of the authority defended the cost-cutting decisions of the traffic light coalition of the SPD, Greens and FDP, which will cut subsidies for grid fees in 2024: "That was a difficult decision for the federal government. Unfortunately, you can't save money without it having an impact. In this respect, I can understand the decision." The elimination of the planned subsidy of 5.5 billion euros will mean that an average four-person household will pay 120 euros more in grid fees per year. Müller assumes that the grid operators will quickly pass this on to customers: "Sooner or later, the costs will be passed on to all consumers, regardless of when the changes are implemented."
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Klaus Müller, the President of the Federal Network Agency in Germany, attributed the anticipated high electricity prices for consumers to persisting wholesale prices that are still higher than before the Russian war of aggression, despite a significant decrease compared to 2022. The head of the network agency acknowledged the controversial decision of the German government to cut subsidies for grid fees in 2024, which he dubbed a challenging choice with ramifications for consumers. Müller anticipates that grid operators will eventually transfer the eliminated 5.5 billion euros in subsidies to customers, leading to an additional 120 euros in annual grid fees for a typical four-person household.
This perspective on electricity prices was shared by Müller in an interview with the Rheinische Post, highlighting the ongoing concerns about affordability in Germany's energy sector. Recent developments in the market, such as the decrease in wholesale prices, have not significantly impacted the overall price situation for consumers, as the prices remain elevated compared to pre-conflict levels. The federal government's cost-cutting measures and the anticipated response from grid operators are further exacerbating these issues, potentially affecting the electricity bills of households and businesses alike.
In light of these concerns, the Federal Network Agency and other relevant authorities are closely monitoring the situation to ensure the fairness and transparency of energy prices in Germany, as well as to address any potential market imbalances that may impact consumers. This commitment to maintaining a stable and affordable energy market forms a crucial part of the Federal Network Agency's mandate, aimed at protecting the interests of energy consumers and promoting sustainable development in the long term.
Source: www.stern.de
