ASEW Forecasts a Significant Increase in Electricity Levies by 2025

Indications from the Association of Municipal Utilities (ASEW) suggest a notable rise in electricity levies in 2025. In 2025, the offshore grid levy will amount to 0.656 cents per kilowatt-hour, a clear increase from this year's 0.591 cents/kWh, marking an 11% growth. On the other hand, the KWKG levy remains nearly consistent with its previous value at 0.277 cents per kilowatt-hour, accounting for a marginal 0.7% increase. The §19-StromNEV levy notably rises to 1.558 cents per kilowatt-hour, skyrocketing from 0.403 cents per kilowatt-hour in 2024, an increase of 287%. Using the §19-StromNEV levy, the government plans to alleviate electricity customers, especially those in regions with high network charges due to abundant renewable energy.

As a result, the accumulated levy burden for the upcoming year will be 2.491 cents per kilowatt-hour, an evident rise from this year's 1.334 cents per kilowatt-hour, denoting an approximately 86.7% increase in electricity levies.

Importance of Electricity Levies in 2025

"Since the abolition of the EEG levy, the levy burden has indeed significantly decreased," states Daniela Wallikewitz, managing director of ASEW. "However, the remaining three electricity levies still serve as crucial indicators for the energy transition. Making up 6% of the electricity price, the levies may not be a significant factor for price developments anymore, but the trend remains vital considering uncertain future inflation rate forecasts and the fact that electricity in Germany will continue to be relatively expensive."

Even though the EEG levy is no longer in effect, the four transmission system operators calculate the EEG funding requirement in line with the levy determination. This amount, compensated by the federal budget, will be 17.03 billion euros in 2025. This figure is a significant rise of 60.4% from this year's 10.616 billion euros. However, a small relief is the EEG account balance, which is expected to have a positive balance of 500 million euros at the end of the year.

Transparency in Price Calculation for Customers

Even as the immediate consequences of the energy crisis wane or are mitigated by political measures, the world of energy, according to ASEW, finds itself constantly impacted by relatively high electricity prices. The average electricity price in 2024 for a sample household consuming 3,500 kilowatt-hours per annum, as stated by the industry association BDEW, stands at 41.35 cents per kWh. These prices may not be directly visible on electricity exchanges, which have now largely reached pre-crisis levels. However, many energy suppliers still need to gradually include the extraordinary burdens from the past in their pricing structure. According to ASEW, brief periods of price relief do not signify a trend change towards consistently lower electricity prices. This is further compounded by additional, energy-independent costs for electricity supplier customers. "This has further heightened the existing price sensitivity," confirms Daniela Wallikewitz. "It remains prudent for municipal utilities to make their balanced electricity price calculations open and transparent to customers."

Educating customers about the complex composition of their electricity price remains a core mission for municipal utilities, especially as the steadily rising carbon price places a noticeable burden on consumers. ASEW assists its members in this endeavor by providing access to a selection of animated explanatory videos. These videos, in a neutral version, are available for free to ASEW members. A personalized version is available for a modest additional fee. For direct communication of price adjustments, ASEW offers its members an information package consisting of sample letters and a flyer explaining the composition of the electricity price. Additionally, the biannual web workshop "Communicating price adjustments correctly" can also be booked as an in-house seminar.