energy
Yield for network operators falls: electricity price could fall
After a decision by the Federal Network Agency, the energy price situation could ease somewhat in the long term. Photo: Hauke-Christian Dittrich / dpa
© dpa-infocom GmbH
The price of electricity could possibly drop somewhat from 2023. According to a decision by the Federal Network Agency, this is possible.
According to a decision by the Federal Network Agency, the situation could ease somewhat in the long term, given the recent rise in energy prices.
The regulatory authority published so-called equity interest rates in Bonn on Wednesday, which network operators get. That rate of return will decrease, that is now clear. The new requirements will take effect in 2023 for electricity and 2024 for gas.
The network charges borne by the end customers could then be slightly lower – provided that there is no significant increase in costs that the operators are allowed to charge. A further increase in costs is quite possible because the expansion of the networks and the measures for system security are expensive.
The network charge currently accounts for around a quarter of the energy prices for households. According to the Federal Network Agency, the network charge for electricity last year averaged 7.50 cents per kilowatt hour for households and 1.56 cents for gas.
The authority cited the general low interest rates as the reason for lowering the interest rate. “The lower interest rates reflect the lower level of interest rates on the capital markets,” said network agency boss Jochen Homann. Investments in the networks nevertheless remained “permanently attractive”. At the same time, he pointed out that the returns of the network operators are paid by the network users, i.e. consumers, industry and commerce. “These must not be unnecessarily burdened.”
According to the authorities’ decision, the equity interest rate for new systems will drop from currently 6.91 percent before corporation tax to 5.07 percent and for old systems from 5.12 to 3.51 percent. This interest only makes up part of the network charges borne by end consumers. The biggest chunk are the costs of construction, operation and maintenance.
According to industry circles, the lowering of the interest rate means that network operators will receive almost two billion euros less within five years than they would have received under the old interest rate. Industry, trade and households will be relieved by this amount within five years.