10/15/2012, Berlin

BDEW on today's publication of the 2013 EEG levy:

Share of taxes and levies in the electricity price rises to a record level of approx. 50 percent in 2013

The funding amount under the EEG will reach approx. 20.4 billion Euros next year

In the context of the discussion about the strong increase of the 2013 EEG levy, the German Association of Energy and Water Industries (Bundesverband der Energie- und Wasserwirtschaft - BDEW) points out that the share of state-imposed taxes and levies in the electricity price for private customers is likely to rise for the first time to approximately 50 percent next year. According to first calculations of the BDEW, the reasons for this rise are the substantial increase of the EEG levy for the year 2013 of 5.277 Cent per kilowatt-hour and further legal provisions on shared contributions. The Federal Network Agency assumes that the grid fees published today will rise next year. During the next few weeks, further price components determined by the government, such as levies under Section 19 of the Electricity Grid Access Fee Ordinance and under the Cogeneration Act will be calculated on the basis of the grid fees. The new offshore liability rule will also be taken into account in the grid fees. All these electricity price components will rise accordingly. According to the BDEW, electricity customers are likely to have to pay a total of about 20.4 billion Euros (bn. Euros); (2012: 14.1 bn. Euros, 2011: 13.4 bn. Euros, 2010: 8.3 bn. Euros) only for funding of green electricity generation under the Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz - EEG).

"It is clear that the companies are no longer able to compensate this strong increase in electricity price components determined by the government or regulated, respectively, and that they must pass them on to their customers", Hildegard Müller, Chairwoman of the BDEW General Executive Management Board declared. It rests with the government to reduce these state-imposed electricity price burdens on household customers.
As ultimately expected, the 2013 EEG levy has exceeded the 5-Cent mark. "I share the customers' concern regarding the sharp increase of the EEG levy. The Renewable Energy Sources Act (EEG) needs to be subjected to a comprehensive reform. The Federal Minister of Economics, Altmaier, addressed last week some relevant and important issues: In the light of the dynamic increase in the costs of development and system integration it is quite obvious that renewable energies will have to be marketable and need to be funded in a more efficient manner and synchronised with the network development", Müller explained.

In the context of the urgently required network development, Hildegard Müller advocated the increase in flexibility of the Renewable Energy Sources Act (EEG): "I believe that it is not expedient to continue with the unrestrained construction of new renewables-based plants in regions where the network extension cannot keep up with the rapid development of renewable energies. In regions where electricity generation temporarily exceeds the demand already today, the "traffic lights" should be switched to amber or red until the corresponding electricity transmission lines have been completed."

"The marketability and competitiveness of renewable energies is indispensable if they are to become the future backbone of energy supply and provide 80 percent of the electricity generation by 2050, as planned by the Federal Government. To this end, renewable energies need to be gradually integrated into the market, remain affordable and provide system services in order to be able to supply electricity as reliably as only conventional power stations can do for the most part at the present time“, Hildegard Müller declared.

Müller also referred to the forthcoming calculations and publication deadlines of further government-induced electricity price components: "In the near future, e.g. grid fees, levies under Section 19 of the Grid Access Fee Ordinance, levies under the Cogeneration Act and the new offshore liability to be taken into account for the calculation of the grid fees will be published. All these components will have an impact on the calculation of electricity prices. This situation poses great challenges to consumers and energy suppliers."



More detailed BDEW information

Dates of release of government-induced electricity price components:

EEG levy: Publication on 15 October 2012, with effect from 1st January 2013.

Grid fees: Publication of provisional grid fees by 15 October 2012 - final fees by 31 December 2012, with effect from 1st January 2013.

Cogeneration surcharge under the Cogeneration Act: No binding deadlines for publication - publication intended by the Transmission System Operators (TSO) at the end of October 2012 (if data are available in due time), with effect from 1st January 2013.

Levy under Section 19 Paragraph 2, Electricity Grid Access Fee Ordinance (Stromnetzentgeltverordnung - StromNEV): Publication on 20 October 2012 by the TSOs, with effect from 1st January 2013.

New offshore liability levy (or EEG liability levy) under Section 17f of the draft amendment to the Energy Industry Act: Publication by the TSOs under Section 17 of the draft amendment to the Energy Industry Act, on 15 October 2012, with effect from 1st January 2013.

Determination of the EEG levy:

The EEG levy is determined by the German transmission system operators on the basis of clear-cut provisions of the legislator. As responsible authority, the Federal Network Agency monitors the calculation, determination and publication of the EEG levy. Energy suppliers do not benefit from this levy, but they pass it on exclusively to the customers. Throughout Germany, the consumers pay a uniform compensation only for the forecasted generation from renewable energies. Regardless of whether the EEG levy was over-estimated or as in 2010 under-estimated, the difference between the forecast and the real development is subsequently set off in positive or negative terms, including possible interest for the customers, and is taken into account in the EEG levy of the following year. Thus, customers do not make any loss but pay only for the actual costs incurred.

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