05/25/2012

BDEW 2012 electricity price analysis:

Taxes and levies have increased tenfold

Total of state taxes and levies amounts to almost 24 billion Euros / Typical three-person household pays about 75 Euros per month for electricity

Berlin, 25 May 2012 – The total of state taxes and levies on electricity prices has increased tenfold since the market liberalisation in 1998. While electricity customers had to pay 2.3 billion Euros of taxes and levies with their electricity bill 14 years ago, this amount has increased to 23.7 billion Euros (2011: 23.1) and accounts today for 45 percent of the electricity price for household customers. The shared contribution for the promotion of renewable energies (EEG fee) has the largest share in state taxes and levies totalling 14.1 billion Euros (2011: 13.5).

This is the main result of a recent study of the German Association of Energy and Water Industries (Bundesverband der Energie- und Wasserwirtschaft - BDEW) which analysed the changes in the basic supply tariff and the common tariff products for household customers. A typical three-person household with an annual consumption of 3,500 kilowatt-hours pays approximately 34 €/month for taxes and levies on its electricity bill; about 41 €/month have to be paid for procurement, transport and distribution – i.e. the price for the actual electricity supply service.

A new levy introduced in 2012 under Article 19, paragraph 2 of the Electricity Network Fee Ordinance has also led to a price increase for the majority of electricity customers. According to the new regulations, power-intensive industrial enterprises can apply for a complete exemption from network fees on condition that the points of consumption show at least 7,000 utilisation hours and an of electricity consumption of at least Gigawatt-hours. A comparable relief existed already before. To date, the relief has been passed on through the network fees in the respective network area and therefore affected final consumers very differently. Since the beginning of 2012, the relief has been directly paid as a Germany-wide levy by all final consumers. Besides, the relief was extended. This year, the levy totals approximately 440 million Euros, a major part of which constitutes an additional burden.