Created: 15/12/2022, 14:09
From: Caspar Felix Hoffmann For private customers and small businesses, the brakes on the price of electricity should come from January. As a result, families can save several hundred euros.
Frankfurt – Prime ministers and the federal government agreed on Wednesday, November 2, not only to curb the price of gas, but also to curb the price of electricity. As with gas, the price of electricity should be capped at 40 cents per kilowatt-hour at 80% of conventional annual consumption. This regulation applies to private customers and small businesses. 'The difference between the market price you pay and the cap is compensated monthly by the suppliers directly with the discount as a relief,' he says Federal and state resolutions. The Bundestag has also spoken out in favor of curbing electricity prices. The Federal Council's decision of 16 December is still pending.
Based on current average electricity prices, the portal estimates Check 24that a family with average consumption can save up to 320 euros a year. This was based on the current average electricity price of 48 cents per kilowatt hour.
The federal and state governments have decided to curb the price of electricity, which is intended to ease the financial burden on citizens and businesses. LINK/B. Leitner/Imago
Electricity price brake: Family in a single-family house can save 320 euros a year
According to this, an average family of four living in a single-family house consumes around 5,000 kilowatt-hours of electricity per year. If electricity costs 48 cents a kilowatt hour, they would have to pay 2400 euros. If they slowed down their electricity bills instead, they could save around 320 euros a year. Even a family with a low annual consumption of 4250 kilowatt hours would save 272 euros.
For single-family families, the relief could be lower, in line with the drop in overall consumption. An average household would have to reckon with a consumption of 1500 kilowatt hours from around 96 euros per year in January. With higher consumption, for example at 2500 kilowatt hours, a further saving of 160 euros would be possible.
5000 kilowatt hours
4250 kilowatt hours
2500 kilowatt hours
1500 kilowatt hours
*Source: Check24 (based on an electricity price of 48 cents per kilowatt hour)
Emergency aid, the curb on gas and electricity prices cost 200 billion euros
The governing coalition of SPD, Greens and FDP is also planning a curb on electricity prices for industry, which should receive a net price of 13 cents per kilowatt hour for a basic electricity share of 70% of electricity consumption today, based on annual consumption in 2021. Support to industry should comply with European state aid rules.
Emergency aid in December and the curb on gas and electricity prices are mainly financed by the Economic Stabilization Fund (FSM): 200 billion euros are foreseen for this. Furthermore, the electricity price brake is partly financed by so-called random profits. This is planned for March 2023, but retroactively to September 1, 2022. The amount is expected to be in the double-digit billions.
Windfall profits are windfall profits for some electricity producers, as the price of electricity is based on the more expensive energy source, gas, but electricity can also be produced cheaper. For example from wind, solar and nuclear energy. According to the federal government, 90 percent of random prizes must be reclaimed. When it comes to saving electricity, it helps to find the biggest energy consumers in your home. (case)