Green Energy Levy: Five Million German Households Face Rising Power Bills

  • Date: 25/02/14
  • Reuters

Some 80 German companies are set to raise retail electricity prices in February, March and April by an average 4 percent, data from the internet portal Verivox showed on Monday, after the government last month hiked a levy to support green power.

The price of German retail power – one of the most expensive in Europe – is controversial because of rising subsidies to producers of renewable power, paid for by consumers. The government is trying to rein those in.

“Several utility companies promised stable prices at the turn of the year, but now they are making up for it,” Verivox said in a statement.

The portal monitors 1,089 power companies in a fragmented market and recommends prices comparisons to help customers switch supplier if necessary to get a better rate.

“The result for a typical household will be additional annual costs of 44 euros ($60.5) a year. Some 5 million households are affected (over the three months).”

Taxes and fees levied by the state account for half the power bill and have nearly trebled over the past 10 years.

The renewable energy surcharge, the main element, rose by 18 percent to 6.24 euro cents per kilowatt hour on January 1.

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