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Stromnetz Berlin publishes 2023 provisional grid fees

14.10.2022

Energy crisis and high investments lead to rising grid fees

Berlin’s households can expect grid fees to increase in 2023. Higher costs – particularly for procurement to compensate for energy losses – and further increased investments in the Berlin distribution grid will lead to an increase.

In concrete terms, this means in 2023, grid fees for Berlin household customers will also consist of an unchanged annual basic price of 39.70 euros and a changed labour price of 8.93 cents per kilowatt hour (previously 6.59 cents/kWh). A slightly reduced annual price of 8.44 euros (previously 8.51 euros) for the operation of a traditional meter (single tariff meter) comes on top of this. For a Berlin household with an average annual electricity consumption of 1,950 kWh, this adds up to an additional cost of around 3.75 euros per month.

The reason for the high rise in grid fees for Stromnetz Berlin is the dramatic energy price developments for gas and electricity, starting as early as 2021. This is affecting all network operators throughout Germany, both at the distribution and transmission grid levels. Grid operators such as Stromnetz Berlin GmbH, like other industrial companies, are currently also affected by huge energy price increases. In detail, grid operators must procure energy quantities for the safe operation of their grid in order to balance out energy losses and cover operating consumption. To this end, they purchase the corresponding electricity quantities via defined procurement processes. The prices on the market, which have risen drastically in recent months, are reflected in the cost calculations of the grid operators – passing these additional costs on in the form of increased grid fees is unavoidable.

Another reason for the necessary grid fee increase is the further increase in investment costs. Despite a difficult market environment, Stromnetz Berlin is investing heavily in the modernisation of the main urban distribution grid. These investments are also essential to upgrade the distribution grid in order to meet the challenges of the energy transition.

Stromnetz Berlin supports proposed relief measures

A moderate increase in grid fees from the upstream transmission grid of 50 Hertz Transmission GmbH, which has already been announced, is included in the provisional fees now published. For the four German companies at the transmission grid level (TSOs), the legislator has provided cost and fee-relief federal financial resources of 13 billion euros in its current relief package in order to cushion the otherwise very high increases in TSO grid fees. Stromnetz Berlin is passing on these fee reductions to all Berlin customers in its own grid fee calculation. In the case of distribution grid fees, no comparable relief is provided for by law at the transmission grid level.

However, Stromnetz Berlin is in favour of the other relief measures proposed by politicians with regard to the redistribution of the windfall profits achieved by the generation companies on the electricity exchange and the proposal by the German Energy and Water Industry Association (BDEW) to reduce VAT on electricity bills from 19% to 7%, as has already been decided for gas and district heating.

The grid fees are a component of the electricity price and are charged equally via the electricity tariffs of all electricity suppliers operating in Berlin. On average, they account for about a quarter of the price of electricity. Grid fees consist of the costs for the transport of electricity, the costs for the operation of the electricity meters, the consumption measurement and billing as well as the costs of the upstream transmission grid. The amount of the fees is determined in accordance with the specifications of the Electricity Network Fee Regulation Ordinance (StromNEV) and the Incentive System Ordinance (ARegV).

In accordance with Section 20 (1) of the Energy Industry Act (EnWG), Stromnetz Berlin GmbH must publish the fees for grid access on the Internet for the following year by 15 October each year. The estimated grid fees can now be viewed at www.stromnetz.berlin/entgelte. Stromnetz Berlin has thus informed all suppliers and grid customers about the adjustment of grid fees. All published fees are provisional fees. Changes may still be made up to the effective date of 1 January 2023.