Wednesday , 6 December 2023
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Global Economy

Almost a third more for electricity

One of the largest energy suppliers in Germany is massively increasing the price of electricity for its customers. EnBW is raising the prices in the basic supply tariff by an average of 31.1 percent, as the group announced today. Reason are increased procurement costs, among other things, as a result of the Ukraine war and the throttled gas supplies from Russia. According to EnBW, it supplies around 5.5 million customers with electricity and gas.

"If you take into account the relief resulting from the passing on of the elimination of the EEG surcharge, the price level is 15.2 percent above the previous year," the supplier said. He increases the tariffs beyond the basic service to a similar extent. According to EnBW, the price adjustment is in the middle of the market. No price adjustment is currently planned for heat flow, for example for night storage heaters.

Supplier wants to avoid blocking

EnBW is aware that this price increase represents a financial burden for customers, said Colette Rückert-Hennen, the board member responsible for sales. "Nevertheless, it is not possible for us to maintain our current prices. The reason for this is the massively increased costs on the energy market." EnBW has reduced electricity prices twice since 2020.

Rückert-Hennen announced that the electricity and gas supply should not be turned off in winter for financially heavily burdened households. "Because we want to prevent them from getting into an additional emergency situation as a result of the closures," said the board member. Here other solutions would be sought.

In addition, EnBW is planning a one-off savings bonus of EUR 100 for existing gas customers who use at least ten percent less gas than in the previous year's heating period.

However, the provider reserves the right to increase the prices even further. As unpredictable as the situation on the energy markets is at the moment, "unfortunately I cannot rule out that further adjustments will be necessary," said Rückert-Henne of the "Stuttgarter Zeitung" and the "Stuttgarter Nachrichten".

Electricity prices are likely to continue to rise

Electricity prices had increased significantly before the Russian attack on Ukraine. The reason for this was the economic recovery after the Corona crisis. According to the Federal Association of Energy and Water Industries (BDEW), the average electricity price for households in July 2022 was 37.30 cents per kilowatt hour (kWh). In the previous year it was still an average of 32.16 cents.

According to the comparison portal Verivox, the current average electricity price is around 42 cents per kilowatt hour. Household prices have risen more than ever before over the past 12 months.

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