Germany will cut a green energy surcharge on consumers’ electricity bills by 5.7 percent next year, but savings for households will be limited as other fees are expected to rise.
Germans pay the highest electricity bills in Europe as state-induced taxes and fees account for over 50 percent of power bills. German power network operators (TSOs) said on Monday that revenues collected to support green electricity are high and wholesale market prices have risen, allowing renewables producers to rely less on subsidies.
Next year the surcharge under the renewable energy act (EEG) – a fee that accounts for over a fifth of energy bills – will fall to 6.405 euro cents (7.4 US cents) per kilowatt hour (kWh), from 6.792 cents this year, TSOs said in a statement, according to Reuters.
That was a steeper cut than forecast by industry group BEE last week, but may be offset by rises in other levies such as those on use of transport grids. “Consumers should not pin too much hope on noteworthy price cuts by their electricity suppliers,” said Arik Meyer, managing director of SwitchUp, an online service for supplier switches.
The portal calculated that a typical household consuming 3,500 kWh per year would save just 13.72 euros through the move. The EEG fee makes up around 23 percent of consumers’ final bills, making it the biggest and most symbolic spending under Germany’s Energiewende policy to transition to renewables.
Payouts under the EEG this year are expected to amount to over 25 billion euros, according to industry estimates.