Does the electricity price cap endanger the energy transition?
Posted: Sat Jan 25, 2025 9:31 am
Since spring, the federal government has put together extensive relief packages totaling 300 billion euros. In our last blog post, we already outlined one of the relief packages related to the defense shield, which included a proposal for a price cap on electricity, gas and heat. Now, on November 25, 2022, the cabinet has created the framework for the draft law on price caps by circulation. They are to take effect from March 2023, apply retroactively to January and February 2023, and expire in April 2024. What is new is the draft law to introduce an electricity price cap, which is intended to help reduce electricity costs overall.
How exactly does the electricity price brake work?
The price of electricity for private consumers and small businesses is capped uruguay consumer email list​ at 40 cents per kilowatt hour. This applies to the basic requirement of 80 percent of historical consumption - usually measured against the previous year. For consumption that exceeds the basic requirement of 80 percent, the current regular market price must still be paid.
To put this into perspective: According to the comparison portal Verivox, end customers pay an average monthly electricity price of 48.16 cents per kilowatt hour (November 2022). In November 2021 it was still 34.79 cents, and in November 2020 even less (28.77 cents). The electricity price cap applies to the basic requirement of 80 percent of historical consumption - usually measured against the previous year. For consumption that goes beyond this, the regular market price must then be paid. For medium and large companies with more than 30,000 kilowatt hours of annual consumption, the cap is 13 cents per kilowatt hour (net working price) for 70 percent of historical consumption - usually measured against the previous year. They also pay the regular market price for consumption above this. According to the BDEW electricity price analysis from July 2022, the electricity price for industry rose to 40.05 cents per kilowatt hour. In 2020, this figure was still 17.76 cents per kilowatt hour.
How exactly does the electricity price brake work?
The price of electricity for private consumers and small businesses is capped uruguay consumer email list​ at 40 cents per kilowatt hour. This applies to the basic requirement of 80 percent of historical consumption - usually measured against the previous year. For consumption that exceeds the basic requirement of 80 percent, the current regular market price must still be paid.
To put this into perspective: According to the comparison portal Verivox, end customers pay an average monthly electricity price of 48.16 cents per kilowatt hour (November 2022). In November 2021 it was still 34.79 cents, and in November 2020 even less (28.77 cents). The electricity price cap applies to the basic requirement of 80 percent of historical consumption - usually measured against the previous year. For consumption that goes beyond this, the regular market price must then be paid. For medium and large companies with more than 30,000 kilowatt hours of annual consumption, the cap is 13 cents per kilowatt hour (net working price) for 70 percent of historical consumption - usually measured against the previous year. They also pay the regular market price for consumption above this. According to the BDEW electricity price analysis from July 2022, the electricity price for industry rose to 40.05 cents per kilowatt hour. In 2020, this figure was still 17.76 cents per kilowatt hour.