Like many other German electricity suppliers, Stadtwerke Gießen (SWG) has been forced to raise electricity prices for the basic and replacement supply this winter. The reason for this is the development of purchasing conditions: Because stock market prices have been rising steadily for some time due to high demand, SWG has no choice but to increase prices. "With our sophisticated procurement strategy, we have been able to cushion many a price spike in the past. But even that is reaching its limits this year. The rise in electricity prices on the stock exchange is simply too massive," says Jens Schmidt, Chief Commercial Officer, explaining the unpopular but economically necessary step for the company.
What does this mean in concrete figures? From 1 January 2019, a kilowatt hour will cost 1.73 cents more gross. On the same date, the basic price will rise from 94.77 euros per year to 128.52 euros gross per year. An average household with an annual consumption of 2,500 kilowatt hours will therefore pay €77 gross more per year. This corresponds to an increase of 6.42 euros per month. "This step is not easy for us, we would have liked to keep our electricity prices constant," adds Ina Weller, company spokesperson for SWG. However, she has a possible way out - a visit to the energy advice centre at the SWG customer centre on Marktplatz: "Because we have almost no leeway when it comes to pricing due to the high government share, we try to help our customers save electricity and thus reduce their expenses."
Share of taxes and levies: almost 50 per cent
Unlike in the recent past, state-influenced costs play virtually no role in the rise in consumer prices. In fact, levies and grid fees even fell slightly. "Of course we have included this in our calculation. But we are only talking about a total of 0.24 cents per kilowatt hour. Compared to the enormous increase in exchange prices for energy procurement, this is a drop in the ocean," Jens Schmidt continues.
Due to this minimal decrease, the share for taxes and levies remains practically unchanged and stable at almost 50 per cent. "Apart from that, the state is also making a real profit from the price increase," calculates Ina Weller. Without VAT, the increase would only be 1.45 cents per kilowatt hour. Of the 77 euros that the model household has to pay more per year, over 12 euros goes directly to the tax authorities in the form of VAT.
But SWG also has good news - at least for all those who heat with natural gas: the prices for this environmentally friendly fuel will remain stable over the winter. This is despite the fact that there have also been significant increases in exchange prices for gas.