03 Sep '12, 8pm

German Electricity Prices Rise as Utilities Increase Their Profit Margin from 1.1% to 8.2%

German Electricity Prices Rise as Utilities Increase Their Profit Margin from 1.1% to 8.2%

In November, Germany’s four transit grid operators (the country has around 900 distributor grid operators) will once again determine the surcharge passed on to retail consumers to cover the cost of renewable electricity. The “EEG surcharge” (EEG is the German abbreviation for the Renewable Energy Act) is essentially the result of the cost of all feed-in tariffs minus the price of electricity on the power exchange; media reports estimate that this surcharge could rise by nearly 50 percent next year to more than five cents per kilowatt-hour. For large power firms like RWE and Vattenfall, the reason is obvious: the energy transition is not a free lunch, as they repeatedly tell German media. Vattenfall estimates that consumers face an additional 150 billion euros in costs by 2020.

Full article: http://cleantechnica.com/2012/09/03/german-electricity-pr...

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