Wednesday, 20 October 2010

Green Subsidies: Price Shock For German Electricity Customers

GWPF
"Next year, German households are in for a big price shock: the renewable energies levy, which every household in Germany has to pay as part of their electricity bills, will increase by over 70 per cent to 3.5 cents per kilowatt hour. This was announced by the German network operator on Friday. For an average household this will mean additional costs of around 10 € a month, according to the Federal Environment Ministry.

An end to the price spiral, which is caused by the subsidies for green electricity, is not in sight. Holger Krawinkel, energy expert of the Federation of Consumer Organizations, expects a further rise of the so-called EEG surcharge in the medium term. “It will rise by more than 5 cents in coming years in any case", Krawinkel predicted in an interview with the news agency DAPD. The reason: The federal government has failed to cut subsidies for solar energy fast and strong enough. Moreover, the impending boom in offshore wind energy is not even included in the green energy levy."

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