Ökostromumlage

“Environmentally-friendly electricity contribution” or “share in the costs”; this is a subvention to build more solar and wind power-generating capacity in Germany. Paid by electricity consumers, this contribution will probably increase in 2013 from ~3.6 to ~5.3 eurocents/kWh, or by an additional ~60 euros per average German household.

On 07 Oct. 2012 the president of the German Federal Cartell Authority asked for this contribution to be modified because he said it will soon be as high as the price of electricity on the Exchange.

Angela Merkel’s coalition partner, the libertarianesque FDP, advertises itself as a party that lowers taxes and deregulates in the interest of simplification (though it appears to me they have trouble finding projects that do this while actually simplifying and while actually benefiting average voters and not e.g. rich people). The FDP has now called to reduce value-added tax on electricity as compensation for the Ökostromumlage. Angela Merkel’s environmental minister (CDU) disagreed, saying he first wanted to find out how their partner party would compensate for the lost budgeted funds. The Green Party said it refuses to lower subventions for alternative power sources.

Update on 10 Oct 2012: Angela Merkel’s environmental minister (CDU) is now calling for a new Ökostromumlage law.

Update on 21 Oct 2012: Tagesschau.de reports that an internal SPD paper is also calling for a value-added tax rebate on electricity. The paper also calls for student allowances (BAFÖG), the base welfare income for people seeking work (Grundsicherung für Arbeitssuchenden, EUR ~690/month) and housing allowances (Wohngeld) to be “adjusted” for the electricity contribution increase.

(ÖÖÖ koh strome oom log eh.)

Leipziger Strombörse

The European Electricity Exchange runs platforms for trading in many power-related markets. It is located in Leipzig and was created by a fusion of Leipzig’s LPX and Frankfurt/Main’s EEX in 2002.

A study commissioned by Germany’s Green Party has announced that while for years now electricity prices have been steadily falling on the EEX, electricity prices have been steadily rising for Germany’s small private consumers. Cost reductions have not been passed along to private consumers and cost increases have. German consumers are paying an estimated EUR 0.02/kilowatt hour too much, totalling three billion euros this year. High-volume customers, such as industrial clients, have meanwhile negotiated lower electricity prices with the utilities and lower environmental contributions with the government. The Bundesnetzagentur has now calculated e.g. that Germany’s biggest electricity customers consume 18% of its electricity but pay only 0.3% of the alternative energy law costs.

Responding to the report, the power companies blamed the flawed system, which they say is politicians’ fault. Also, they say, high prices are caused by taxes and environmental contributions.

ZDF heute journal reports that small private consumers aren’t switching electricity providers enough to create a sense of market competition.

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