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Germany Feed Law

July 8, 2005

Burden on electricity intensive industry by the EEG


 

This is an English abstract of the original German document.

Abstract:

Electricity in Germany is today approximately one-third cheaper than in middle of the 1990s. This is due to the liberalisation of the electricity market in Germany and overall has saved the average German household 8 €/month.

Electricity produced through the EEG (Renewable Energy Sources Act or Feed-In-Tariff) has cost the average German household about 1 €/month (2002), increasing the cost of Energy by 0,31 € Cent /kWh.

Frequently, the distribution utility marks up the price of electricity twice the true cost of the EEG. This has generated much controversy in Germany.

The study examines whether a cap on the EEG premium cost for energy intensive industries is justified. The study concludes that this is not necessary since it would place an extra burden on the average German household of about 8 €/year.


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