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Electricity grid fees are rising rapidly

Rising electricity demand and the necessary grid expansion are driving grid fees in Germany to a new record high. A current VEA analysis shows that the elimination of state subsidies will increase grid usage costs by an estimated 60 percent this year, making a reform of pricing increasingly urgent.

The latest study by the German Association of Energy Consumers (VEA) on the Electricity grid charges in Germany over the last twelve months sheds light on the changing landscape of the composition of energy costs for companies with medium voltage. In this survey, the total grid charges of almost 800 large companies were analyzed. The focus was on Special contract customers with continuous power measurement using RLM meters. The results revealed a significant increase in electricity grid charges, which companies paid on average by up to 27 percent burdened.

Regional differences and rising electricity grid fees

In detail, it can be seen that the average electricity grid charges in the medium-voltage range are almost 7 cents per kilowatt hour, while in the low-voltage range they are over 11 cents per kilowatt hour. The prices in the Medium voltage have increased by an average of 1.47 cents per kilowatt hour. In the Low voltage is an increase of 2.02 cents per kilowatt hour.

One particularly alarming aspect of this Investigation are the enormous Price differences between the individual regional network operators. Between the cheapest and most expensive providers, price differences of up to 300 percent exist. This shows that the cost of using the electricity grid can vary considerably depending on the region and provider. These large price differences raise questions about fairness and transparency in pricing. The discussion about a fairer distribution the costs and a Uniform nationwide regulation increasingly important.

Causes of the increase in electricity grid fees

The electricity grids are operated by the increasing electricity demand in industry and due to the increasing spread of Electric vehicles and Heat pumps immer weiter strapaziert.  Zeitgleich steigt der Anteil regionaler volatile energy generation. Together, these two factors are placing such a strain on the entire public electricity grid that the predicted and as yet unrealized Grid expansion by the grid operators is becoming increasingly urgent. This task is to be financed by the grid fees. In fact, the slow expansion of the grid has so far also been co-financed by subsidies.

Further dramatic increases expected

Following the ruling by the Constitutional Court in November 2023 and the subsequent decisions on the 2024 federal budget, grid fees in Germany will continue to rise. increase significantly. The latest VEA survey confirms the Forecastswhich experts were already predicting in December 2023. At that time, it was already stated that the removal of subsidies of €5.5 billion from the economic stabilization fund for transmission system operators (TSOs) would reduce the cumulative grid fees in 2024 by estimated 60 % increase to 2023.

Conclusion

Electricity grid charges in Germany have risen rapidly within a year. They place a considerable burden on companies and show regional differences of up to 300 percent. This is due to the growing demand for electricity, the spread of electric vehicles and the expansion of renewable energies. The removal of subsidies for transmission system operators is expected to lead to a further increase of up to 60 percent in 2024. This development underlines the urgency of a fair and transparent reform of energy policy.

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