Like most German electricity suppliers, Stadtwerke Gießen (SWG) will have to raise its prices for electrical energy at the turn of the year. The reasons for this are the price development on the Leipzig electricity exchange and the recent increase in the EEG levy. SWG is keeping its natural gas prices stable.
This winter, Stadtwerke Gießen (SWG) will have no choice but to raise electricity prices for the basic and replacement supply as well as for the special contract tariff PowerPack Privat by just under two per cent. This decision, which has no economic alternative, is based on two negative developments for electricity costs: Once again, the state is tightening the price screw. All levies are rising - with the exception of those for combined heat and power generation and offshore installations. The EEG levy has increased in particular. Its increase alone amounts to more than 0.35 cent per kilowatt hour.
In addition, SWG's sophisticated procurement strategy, with which the company has already been able to cushion many a price increase, has reached its limits this year. This is because prices on the Leipzig Energy Exchange for electricity have been moving upwards for a long time - especially for futures transactions. "As a reputable municipal utility, we have to cover most of our requirements in advance and therefore buy on the futures market," explains SWG company spokeswoman Ina Weller. She adds: "The slight decrease in grid fees does not offset the increase in other price components. Therefore, from a purely economic point of view, we have no choice but to adjust our prices".
Concrete figures
From 1 January 2020, one kilowatt hour will cost 0.69 cents more gross. For an average household in the basic supply with an annual consumption of 2169 kilowatt hours, this means an annual increase of €14.97 gross or €1.25 gross per month. This corresponds to a moderate increase of 1.96 per cent. "We would have liked to have done without this step," says Ina Weller and makes a proposal to all customers: "The high proportion influenced by the state leaves us virtually no room for manoeuvre when it comes to pricing. This is another reason why we have been trying for many years to help our customers save electricity and thus reduce their expenditure. A visit to the energy advice centre in our customer centre on Marktplatz is definitely worthwhile."
SWG also has good news for its natural gas customers: Although global politics are causing the market to move, Stadtwerke Gießen is able to keep natural gas prices stable for the time being.