In Germany, electricity is becoming significantly more expensive due to certain issues. At the end of the year, the costs of electricity will rise even more sharply than originally anticipated.
Related topic: Key changes expected in Germany in 2024
There are numerous reasons for this. What additional expenses should be expected in specific cases?
Here are the reasons why electricity is becoming significantly more expensive in Germany
Until recently, the federal government subsidized electricity, providing a subsidy of 5.5 billion euros to cover network charges. This will no longer apply from 2024.
Meanwhile, the operators of transmission systems—50Hertz, Amprion, Tennet, and Transnet—announced that from 2024, they will double the fees for their networks.
This will increase from 3.12 cents/kilowatt-hour (kWh) to 6.34 cents/kWh.
- The sharp increase in prices is attributed to the rise in costs on energy markets.
As the government no longer compensates network charges, consumers will now have to bear.
- Another reason is the taxes on CO2 emissions, which, among other things, power plant operators must pay for energy production from fossil fuels such as crude oil or natural gas.
It has long been known that these taxes will increase from 2024. It is now announced that the taxes will be significantly higher than planned: instead of 40 euros per ton of CO2, they will now be 45 euros per ton of CO2.
Die Bundesregierung hat sich auf den Haushalt geeinigt. Allerdings müssen die Betriebe nach DIHK-Berechnung 2024 bis zu 20 Prozent mehr für ihren Strom zahlen. "Das ist alles andere als ein Aufbruchsignal", sagt DIHK-Präsident Peter Adrian. Mehr dazu 👇 https://t.co/B9aaWqbno7 pic.twitter.com/R1xWtS7aED
— DIHK (@DIHK_News) December 13, 2023
In general, the President of the German Chamber of Commerce and Industry (DIHK) expects electricity bills to increase by 10–20 percent. This refers to the commercial price of electricity, which is typically about 5 cents/kilowatt-hour higher than the residential price.
Tariffs also vary in terms of taxation.
In some cases, only 20 percent of taxes are levied on commercial electricity. For residential electricity, taxes are almost 27 percent. As a result, the cost increase for residential electricity may also be higher.
- Another indicator that energy will become more expensive from 2024 is the early end to the price brake on electricity.
Previously set for March 2024, it is now December 31, 2023.
From this point onward, consumers will have to pay the full price for electricity again, instead of a maximum of 40 cents/kilowatt-hour.
Therefore, from next year, be prepared for additional expenses and consider tightening your belt.
Related topics:
In 2024, the subsidy for electricity network charges in Germany will cease, leading to a significant increase in electricity costs for consumers. As a result, consumers should prepare for additional expenses and consider tightening their budgets.
From 2024, the fees for transmission system networks in Germany, operated by 50Hertz, Amprion, Tennet, and Transnet, will double, further increasing the cost of electricity.
