Because the situation on the exchange is easing, Stadtwerke Gießen will be able to significantly reduce its electricity prices in many tariffs as of 1 May.
Prices on the Leipzig electricity exchange EEX have been falling for several weeks. This puts Stadtwerke Gießen (SWG) in a position to offer electricity at significantly lower prices again for the vast majority of customers. In concrete terms, this means As of 1 May 2023, SWG will reduce its electricity prices in the basic supply by 12.8 percent. In the PowerPack Private and Professional as well as WarmUp and Heat Pump tariffs, prices will fall by between around eight and eleven per cent. "Around three quarters of all customers will benefit from this price reduction," explains Matthias Funk, Chief Technical Officer at SWG.
Positive figures
By far the most customers have currently opted for the basic supply. In this model, the price per kilowatt hour falls by 6.73 cents to 39.94 cents per kilowatt hour. An average household with an annual consumption of 2,200 kilowatt hours therefore saves 148.06 euros per year.
Important to know: In all tariffs affected by the price reduction, SWG will be below the 40-cent mark from 1 May 2023 - i.e. at a level below the price brake adopted by the German government. "We are therefore not only relieving the burden on our customers, but also saving the federal budget the additional payments that would otherwise be due," adds Matthias Funk, Chief Technical Officer of SWG. In fact, SWG customers who benefit from the current price reduction from 1 May will only have to claim government aid for the months of January to April 2023.
And a silver lining on the horizon
While numerous discount providers withdrew from the market last year in times characterised by sharply rising prices and uncertainty, often cancelling contracts of their own accord, Stadtwerke Gießen and other municipal basic suppliers have reliably supplied their existing and newly acquired customers with electricity at low prices thanks to their long-term procurement strategy. With the forthcoming reduction in electricity prices, SWG confirms the trust placed in it by its customers and once again proves that it passes on positive developments in procurement to its customers as quickly as possible. Of course, this also applies to all other divisions. In fact, the prices for natural gas on the Leipzig EEX are also showing signs of easing. "We are cautiously optimistic and always check carefully whether we can also reduce the price of natural gas in the foreseeable future," promises Andreas Fuchs, Head of Sales at SWG.
This very pleasing development expressly does not contradict the fact that SWG will have to raise its district heating prices again on 1 April 2023. The current indices on which pricing is based offer no other option here. This is because they reflect the level of the past few months, which were still dominated by high energy prices on the stock exchange and were therefore reflected in SWG's procurement costs. But of course, district heating prices will also fall again if developments on the energy exchange stabilise and consequently more favourable values flow into the indices in the coming months. "As things currently stand, we assume that district heating prices could fall by 1 October 2023 - in time for the next heating period," predicts Andreas Fuchs.