German electricity bill breakdown 2017-18

German consumers pay 29.42 Euro-cents per kWh for their electricity, which is above average for Europe. More than half of the bill is for taxes, levies and surcharges. Grid fees, such as metering and related services, account for a quarter, and most of the remainder is due to supply and distribution costs.

German electricity charges have risen from 21.65 euro-c/kWh in 2008 to the current highest yet of 29.42 c/kWh in 2018. In the same timeframe, the renewables surcharge has risen from 1.16 c/kWh to 6.79 c/kWh. Its highest was in 2017 (6.88 c/kWh). This rise has been offset in part by a steady fall in the market price of electricity and related supplier’s fees (7.22 – 6.18 c/kWh, peaking at 8.52

c/kWh in 2009). In 2019, the renewables surcharge will be reduced again to 6.405 c/kWh.

German household electricity bill breakdown 2017-18

Charge type2017 / ct/kWh2017 /%2018 / ct/kWh2018 /%
Supplier5.71206.1821
Grid fee7.51267.2724.7
VAT4.67164.7016
Concession levy1.6661.666
Renewables surcharge6.88236.7923
Electricity tax2.0572.057
CHP and other surcharges0.772.60.772.6
Total29.2829.42

Source: BDEW 2018

Supplier’s cost: profit margin + cost of wholesale market power
Grid fee: set by Federal Network Agency (BNetzA) for use of power grid
Renewable energy surcharge: (EEG-Umlage) covers the state-guaranteed price for renewable energy to producers
Electricity tax: a special tax in Germany, also known as the ‘ecological tax’
Concession levy: a charge for use of public space for power transmission line
CHP: a surcharge on combined heat and power, since operators of CHP receive a gurarenteed price on the electricity they sell
Other surcharges: include Offshore liability levy (0.1%).

German electricity prices and costs, 2017 – 2018

Item /average2017 / ct/kWh2018 / ct/kWh
Spot base day ahead3.454.45
Spot peak day ahead3.814.81
500 cheapest hours-0.290.37
500 most expensive hours7.747.93
Household electricity price29.8629.88
EEG remuneration30.3631.62
EEG cost difference26.0926.73
EEG surcharge6.886.79

Source: https://www.agora-energiewende.de/fileadmin2/Projekte/2018/Jahresauswertung_2018/125_Agora-JAW-2018_WEB.pdf