Electricity prices are exploding: network costs have doubled since 2015!

Electricity prices are exploding: network costs have doubled since 2015!

The costs for Germany's electricity grids have increased significantly in recent years. They have more than doubled since 2015, which is a serious issue for many consumers. According to that Black Forest messenger Network fees this year amount to an impressive 33 billion euros. In complete contrast to the 15.9 billion euros paid in 2015. These figures refer to the largest electricity network operators; smaller ones are not included here.

What is the reason for this increase? A main factor is the energy transition, which is accompanied by a growing share of renewable energies in electricity generation. The costs of converting and controlling the power grid are ultimately borne by electricity customers. In 2015, an average household customer had to pay a network fee of 6.59 cents per kilowatt hour, while last year it was 11.62 cents. The BSW (Federal Solar Industry Association) discovered this in its inquiry to the Federal Network Agency.

Criticism of rising costs

The rising network costs are not without criticism. Sahra Wagenknecht, the party leader, described this increase as “unacceptable” and criticized the failure of energy policy. Their proposal: the abolition of network fees for consumers and a takeover of the networks by the public sector. But it's not just politicians who are under pressure, consumers also have to deal with rising electricity costs.

It looks like electricity costs for electricity consumers could continue to rise in the coming years if no action is taken. A study by Agora energy transition suggests that the necessary subsidies could be reduced from 197 billion euros to 35 billion euros, which would mean savings of around 160 billion euros for the federal budget by 2045.

Recommended measures to reduce costs

In order to achieve these cost reductions, three central measures are recommended:

• Freileitungen statt Erdkabel beim Stromnetzausbau.
• Eigenkapitalbeteiligungen des Bundes zur Senkung der Investitionskosten für Netzbetreiber.
• Einführung dynamischer Netzentgelte für flexible Verbraucher, etwa Elektrofahrzeuge oder Wärmepumpen.

These solutions are intended to serve the goal of stabilizing the expansion and operating costs of the power grids. Without appropriate reforms, network-related costs could increase by up to 30% over the next ten years. For a household of four, we are talking about additional costs of 104 euros per year. Industrial customers would also be affected; There is a risk that costs will rise from 5 cents to 6 cents per kilowatt hour.

Regional differences and their consequences

Another interesting detail is that some regions in Germany generate significantly more electricity from renewable energies than they consume themselves. However, these regions are confronted with high network conversion costs, which leads to a reduction in network fees there. But this reduction entails additional costs for all electricity consumers, which are paid via a nationwide “surcharge for special network use”. This year too, 178 network operators will benefit from a total amount of 2.4 billion euros.

In 2025, household customers will incur an annual surcharge of 1.56 cents per kWh, which means additional costs of around 33 euros per year for normal customers. Things are even tougher for large consumers; you have to expect additional costs of up to 9,360 euros.

In summary, it can be said that the discussion about network fees and their reform is more urgent than ever and both politicians and consumers are called upon to set the course for a sustainable energy future.