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Many German retail power prices to rise on Jan 1

07/01/2011

Some 500 of 900 German power firms will increase prices as of Jan. 1, consumer portal Verivox said, detailing recent announcements in the retail energy market for the 40 million households it monitors. The average increase will be 7 percent and a typical household, consuming 4,000 kilowatt hours a year, will have to pay 66 euros ($87) more for annual supply, said the portal, which monitors prices and encourages switching.

Some 500 of 900 German power firms will increase prices as of Jan. 1, consumer portal Verivox said, detailing recent announcements in the retail energy market for the 40 million households it monitors.

The average increase will be 7 percent and a typical household, consuming 4,000 kilowatt hours a year, will have to pay 66 euros ($87) more for annual supply, said the portal, which monitors prices and encourages switching.

"Most operators say that costs for the expansion of renewable energy is responsible for the increases," it said in a statement issued on Tuesday.

"This argument meets with criticism because while admittedly green energy costs have risen, the procurement prices of distributors in the wholesale market have decreased by 20 percent over the past two years," it added.


Big utilities RWE (RWEG.DE), Vattenfall Europe [VATN.UL] and EnBW (EBKG.DE) are among the companies that are increasing prices. Another 41 companies have also said they will raise prices in February by an average 8 percent.


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The operators cite higher costs for transmission grid operators to absorb renewable power, which is mandatory, and to balance the additional load's volatility.


The levy consumers will pay on their electricity bills for green power will next year jump by 70 percent after abundant new capacity has been added in 2010.


The Green Party said in a statement in response to the latest data that consumers could be paying 2 billion euros too much as power production and distribution prices have actually fallen, citing a study commissioned by the party.


The Economy Ministry said on Wednesday that consumers who are unhappy with their supplier should look into switching. Hundreds of providers did not raise their prices in 2010.


The cartel office early in 2011 is due to unveil results of a long-running probe into possible problems with price-setting in the wholesale power market, the ministry said.


reuters.com