Basic electricity and gas supply - Portal: falling prices

Slashing Electricity and Gas Prices for Hundreds of Thousands of Homes in December and January

Good news is on the horizon for many households as electricity and gas prices dip in December and January. According to consumer comparison site Verivox, a whopping 83 electricity rate decreases averaging 12% have been announced for the two months, and yet, five suppliers have also bumped up rates by a mere 2%.

Verivox estimates that this will lead to an average electricity price of approximately 46 cents per kilowatt hour in the basic supply for the upcoming months. In contrast, the electricity price cap, set by the German government, caps the price at 40 cents. If you're in the market for alternatives, electricity can be found as low as 27 cents per kilowatt hour.

As for the exact number of households affected by these changes, it is challenging to provide an exact count. Verivox suggests that around 4.7 million households will benefit from the electricity price cuts in the regions affected. Meanwhile, 900,000 households dealing with electricity price hikes by their providers reside in these same regions.

Now, let's delve into natural gas prices. Verivox has so far reported 99 announced price reductions for natural gas in the basic supply for both December and January, amounting to an average of 15% reduction. With 9.5 million households in the affected regions, around every other household typically relies on gas for heating. In 2021, the basic supply rate for natural gas was displayed at a steady 24%.

Of course, price hikes are still on the table for some regions, with ten basic suppliers in charge of approximately one million households accounting for the increases. The future basic supply rate for natural gas is predicted to be 14 cents per kilowatt hour, surpassing the gas price cap that caps the rate at 12 cents. However, alternative tariffs offer more affordable options, like 8.5 cents per kilowatt hour.

Enjoying lower electricity bills in the basic supply may also lead to reductions in gas expenses, as the gas price in the same category is anticipated to fall along with electricity. Despite this, it's crucial to remember that some households across both electricity and gas supply categories might witness price increases, although the boosts will be significantly more modest.

Sources

• Enrichment Data

``` The current trend in electricity and gas prices for basic supply in Germany, particularly for December 2022 and January 2023, is influenced by various factors such as the global energy crisis, gas price fluctuations, and Russia's invasion of Ukraine.

Electricity Prices

1. Basic Supply Contracts (Grundversorger)
2. The electricity price for households on a basic supply contract was almost 36 cents per kilowatt hour (kWh) in December 2022 [1]. However, this figure dropped slightly to around 34 cents per kWh in January 2022 [1].
3. Comparison with Alternative Tariffs
4. Basic supply contracts tend to be the priciest option compared to other providers or special contracts. As of April 1, 2024, households on a basic supply contract paid around 46 cents per kWh [1].
5. Government-Set Caps
6. The German government has not set specific caps for the basic electricity supply. However, the unpredictability in electricity prices has incited various legislative actions, including the extension of natural gas subsidies to encourage LNG imports and stabilize energy costs [2].

Gas Prices

1. Impact of the Russian Invasion of Ukraine
2. The invasion of Ukraine by Russia led to a substantial increase in gas prices. In December 2021, the gas price rose to more than twice as high at 22.1 cents/kWh in comparison to 10.8 cents/kWh in December 2022 [3].
3. Government Subsidies
4. To counteract the effects of high gas prices, Germany extended natural gas subsidies to fund LNG imports from the United States [3]. This move aims to stabilize gas prices and create a sustainable demand for natural gas [3].

In summary, electricity prices in the basic supply spanned 34-36 cents per kWh in December 2022 and January 2023, with basic supply contracts serving as the most expensive option. The gas prices during this period were substantially higher due to global energy crisis and Russia's invasion of Ukraine, but have since decreased with the extension of natural gas subsidies. ```

[1] [2] Enrichment Data [3] Enrichment Data