Due to dramatically increased procurement conditions, Stadtwerke Giessen has no choice but to raise the electricity prices for the basic supply.
On 1 April 2022, Stadtwerke Gießen (SWG) will introduce new prices for the basic electricity supply. The labour price will rise by just under three cents to 32.92 cents per kilowatt hour. The increase of 8.3 per cent means additional costs of around €5.40 per month for an average household.
"This latest price adjustment is due to the dramatic developments on the energy market," explains Jens Schmidt, Commercial Director of SWG. In fact, German energy traders have been observing the stock market prices for electricity with concern since last summer. From July onwards, prices began to climb continuously and ever faster, reaching an all-time high at the beginning of October.
"After a few weeks of cautious easing, we all assumed in mid-November that the situation would calm down. But we had to revise this assessment relatively quickly," recalls Jens Schmidt. Because the supposed all-time high in autumn turned out to be a bargain by comparison at the end of December. The fact is: In these almost three months, prices on the futures market for electricity doubled once again.
In view of these figures and the further development this year, the price adjustment should actually have been higher. However, SWG's tried-and-tested procurement strategy and cost-effective working methods enable it to at least minimise the burden on its customers. "We are of course aware of our social and corporate responsibility. In order to take both aspects into account appropriately, we always weigh up such sensitive balancing acts very carefully and cautiously," says Jens Schmidt, explaining the approach, adding: "We understand people's concerns. That's why we do everything in our power to keep electricity prices affordable and secure the supply for all customers."
Supply for customers of energy discounters
Recently, we have often heard and read that energy suppliers are citing supply stoppages and the insolvency of some low-cost suppliers as another reason for the current price round. "This argument is understandable, but in our case it plays a rather subordinate role," explains Jens Schmidt. After all, the impact of the unpredictable switch to the respective basic suppliers on their pricing varies from company to company. "Of course, we don't leave the people affected alone, we look after them," Jens Schmidt continues. "However, we have actually only had to accept a comparatively small number of electricity customers who have been left in the lurch into our supply."
Quo vadis electricity price?
Because the production costs in gas-fired power plants have a massive impact on the price of electricity in this country, it is difficult to be optimistic about the future. This is because natural gas is increasingly proving to be an important stake in the international poker game for influence and power. "It's impossible to make any forecasts at the moment," says Andreas Fuchs, Head of Sales at SWG. However, there is a silver lining on the horizon: Finance Minister Christian Lindner is already thinking about ending the EEG levy this summer. "We welcome this potential relief and hope that market prices will allow us to pass these savings on to our customers," explains Andreas Fuchs. It remains to be seen whether this relief will be enough to bring prices down again. After all, further increases in exchange prices and further outages of energy discounters remain a realistic scenario. "In this case, too, we would of course take into account the savings from the abolition of the EEG levy. But nobody can say exactly what effect this will have today," Andreas Fuchs points out.
Trying to keep costs under control
Naturally, the applicable prices for a kilowatt hour are a key factor in the monthly electricity costs. However, consumption counts at least as much. This can be influenced, at least to some extent. And often without sacrificing convenience - simply through mindful behaviour. In fact, many people still consume more electricity than they should. "Our energy counselling service knows all the tricks that can be used to tap into this savings potential," reveals SWG company spokesperson Ulli Boos, adding: "I can only recommend making an appointment quickly." The free one-hour consultations can be booked at www.energiessen.de/online-terminvergabe.
To avoid unpleasant additional payments, it makes sense to check your discounts and adjust them if necessary - in other words, to increase them. All you need to do is call the SWG service number 0800 23 02 100 and the advisors will be happy to help. If you want to change your budget billing yourself, you can do this in the new SWG customer portal - around the clock, seven days a week at https://kundenportal.stadtwerke-giessen.de