Only One Fourth of German Electricity Delivered to Households

Half of it is consumed by industrial users, another fourth by other forms of commerce and the service industry. That’s an interesting fact I just learned from this article at FAZ (in German) about plans for a meeting of German ministers tomorrow to discuss electricity prices.

That means that talking about the end consumer prices for small scale household users (who bear most of the burden of the feed-in tariff system, while industry mostly gets away free) is talking about a minority of only one fourth of the electricity used.

At the industrial level (the most important segment of the market) prices are falling, since heavy users don’t get to pay much for the feed-in tariffs and they can either buy their electricity directly on the wholesale market or force their providers to pass on the savings they get from lower wholesale prices because of the renewable energy merit order  effect.

The FAZ article cited above is mostly free of mistakes, but it gives the wrong impression that industry electricity prices have risen because of the controlled shutting down of nuclear in Germany, and that they are at 10 cent a kWh, while actually they were at 9.0 cents in 2011, falling from 9,75 in 2009, and below the EU27 average of 9.34 cents, as blogged before. The article also notes industrial prices in France falsely as 6 cent, while they actually were at 7.22 cents in 2011 (the last period figures are available) and are going up.

Published by kflenz

Professor at Aoyama Gakuin University, Tokyo. Author of Lenz Blog (since 2003, lenzblog.com).

One thought on “Only One Fourth of German Electricity Delivered to Households

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