As of 1 January 2024, Stadtwerke Gießen is reducing the prices for electricity in almost all tariff models.
Stadtwerke Gießen (SWG) has already reduced its energy prices this year - for electricity in May, for natural gas in July and for district heating in October. Now there is more good news for SWG's electricity customers: On 1 January 2024, the prices for electrical energy will fall again - by between 12 and 16.4 percent, depending on the tariff model selected, including for heating electricity. "We are keeping our promise and passing on the now more favourable procurement conditions to our customers," explained Jens Schmidt, Commercial Director of SWG, at a press conference. The labour price for the basic supply has fallen by 5.51 cents to 34.43 cents per kilowatt hour. For a typical household with an annual consumption of 2,200 kilowatt hours, this means an annual saving of a good 120 euros. The basic prices remain stable. In addition to the basic supply, the price reduction affects all tariffs with the exception of PowerPack Pur. "The contracts for this product do not expire until March 2024. We will be presenting all customers with a new, attractive offer in good time," announced Jens Schmidt.
Some background information
Although a turn of the year usually brings changes in the state price components, on balance these almost balance each other out. However, the grid fees went up. "Fortunately, their increase is so moderate that we can offer more favourable electricity prices overall thanks to the better procurement conditions," says Andreas Fuchs, Head of Sales at SWG.
Important to know: In the PowerPack Pur tariff, the increased grid fees should actually have led to a slight price increase.
Outlook for gas and heating prices
How SWG's natural gas and heating prices will develop in the coming year still depends on various external factors - more specifically on the necessary political decisions on VAT and theCO2 price. The necessary decisions in the Federal Council are not due until December. This very late date will not affect district heating customers. As soon as the newCO2 price is known, SWG will calculate the resulting costs and inform its customers in writing. The prices announced in these letters will apply from 1 January 2024 with the VAT rate applicable at that time.
The late political decision is causing a delay in natural gas prices - at least for some tariffs. This is because natural gas suppliers must adhere to deadlines and announce price changes - depending on the contract - before they come into force. "We assume that we will not be able to announce new natural gas prices for all tariffs until the first quarter of 2024," predicts Jens Schmidt.
However, SWG is dampening expectations that natural gas prices will fall noticeably due to the easing market situation and the reduction of one or two levies. This is because most experts assume that the German government will once again levy the regular VAT rate of 19 per cent instead of 7 per cent on natural gas and district heating from 2024. In addition, politicians are discussing raising theCO2 price more than initially planned. It was actually supposed to rise to 35 euros per tonne last year. Due to the already historically high price level at the time, the German government left it at the current EUR 30 per tonne in 2023. To compensate for this shortfall, 40 euros per tonneof CO2 is being discussed for 2024. "No matter what the decision is - we will calculate with a sharp pencil as usual and offer our customers the best possible prices," announces Jens Schmidt.