High electricity prices: Price increases sometimes have to be reversed

There is currently record inflation in Germany, so consumer prices have risen significantly. The rise in prices for electricity and gas is particularly high. To secure the energy supply, an energy saving regulation came into force on September 1st. A number of electricity providers have already adjusted their prices. The Federal Network Agency is now putting a stop to two providers. After all, certain rules must also be followed when there is a price adjustment.

Electricity price brake should cover basic needs for a maximum of 30 cents per kWh

In December 2021, the two electricity discounters Primastrom and Voxenergie adjusted their prices. In one case, the basic electricity price was increased from 9 euros to 24 euros. Customers should pay 90.83 cents instead of the previous 28.03 cents per kilowatt hour consumed. As early as July, the Federal Association of Consumers had received a large number of complaints about the two “cheap providers”. The Federal Network Agency has now decided that the price increases have to be reversed. If this does not happen, a fine of 100,000 euros will be due. According to Klaus Müller, President of the Federal Network Agency, both providers have not kept to the statutory notice period.

Price adjustments must be communicated to customers in writing one month in advance. At the beginning of 2022, the consumer center Brandenburg went to court against Voxenergie. In Europe, the price of electricity on the electricity exchange is primarily formed by electricity generation via gas-fired power plants. As a result of the war in Ukraine and reduced gas supplies from Russia, gas prices have risen enormously, making electricity generation with gas more expensive. In order to set the electricity price, the most expensive production method is always used, so that operators of solar parks, wind turbines, etc. are currently making a lot of profit from this “coincidence”. According to the Financial Times the EU Commission would like to cap the price per kilowatt hour at 200 eurosbut only for electricity producers who do not generate electricity with gas.

A so-called electricity price brake is anchored in the federal government’s third relief package. Here the Electricity price for basic needs to a maximum of 30 cents per kilowatt hour capped. As a basic need 1,400 kWh per year for a single household, as Justice Minister Marco Buschmann points out. For a family with two children, the basic consumption is assumed to be 3,100 kWh per year. Any additional consumption can then be billed at the electricity tariff of the respective provider. Random profits from the energy companies are to be skimmed off for financing. It is currently unclear whether the electricity price brake applies to all households in Germany or only to low-income households. Either way, both private individuals and the public sector will have to save energy in the near future. Tenants no longer have to adhere to clauses in the rental agreement that revolve around a certain minimum temperature. You can also save power when playing, as we show in the special in PCGH 09/2022. Power can also be saved with multiple sockets including an on/off switch.

Also worth reading: Energy Saving Ordinance: These are the regulations from today

Collection of illegal price increases at electricity providers:

• A number of electricity providers have already adjusted their prices. The Federal Network Agency is now putting a stop to two providers.
• In December 2021, the two electricity discounters Primastrom and Voxenergie adjusted their prices. It went from 28.03 cents per kWh to 90.83 cents per kilowatt hour.
• However, both providers did not inform their customers of the price adjustment a month in advance. As a result, Primastrom and Voxenergie have to withdraw this price increase or pay a fine of 100,000 euros.
• Electricity prices in Europe are increasing because the price of electricity is always calculated according to the most expensive way of generating electricity. Currently, electricity production from gas is the most expensive way. In the future, the EU Commission plans to cap the price per kilowatt hour at 200 euros, but only for electricity producers who do not generate electricity with gas.

Sources: Federal Network Agency, daily News, Finanzen.net, Twitter