Designed to expand the use of renewable energy in Germany, the Erneuerbare Energien Gesetz was established, providing financial benefits for renewable energy providers whose cost to produce energy is higher than traditional sources such as nuclear, coal and gas.
As a provision of law, every kilowatt of electricity generated by renewable sources receives a fixed feed-in tariff, or rebate. This fixed feed-in tariff provides the producers of the renewable energy a guaranteed price for the electricity they produce.
Germany applies a surcharge per kilowatt-hour to all electricity users to generate the funds needed to pay the feed-in tariff. The charge is added to the consumption price, which means the amount of EEG paid is directly related to how much energy is used. The amount of the EEG surcharge is reviewed and adjusted annually.
There has been a considerable escalation of the surcharge since 2000 with greatest increases happening since 2010. In 2013, the EEG amount of €0.0528 per kilowatt-hour represented 18 percent of a consumer’s electricity bill. The EEG rate is now €0.0624 per kilowatt-hour, effective since Jan. 1. Each service provider on the local economy can decide if they will pass this cost on to the user.
A key point to remember is that if you reduce your electricity usage through active efforts to conserve, you also reduce the amount of EEG fees you will pay. We’ve all heard stories of enormous and unexpected year-end bills. If you are concerned about the expected increase or want to ensure that you aren’t surprised with a big bill at the end of the year, it is simple to track your own usage. Just follow a few simple steps.
• Step one: Know the location of your electricity and gas meters.
• Step two: Determine your electricity and gas rate either from your bill or from your provider. Your rate will consist of a basic price, euro per year, and a consumption price, euro per kilowatt-hour, €/kWh.
• Step three: Set a monthly reminder to read your meters.
• Step four: Read the number from the face of the electricity meter and use the example below to calculate your expected costs.
Let’s say your first month meter reading is 47,668, and 30 days later, or the second month, the meter reads 47,875. Subtract between the two and you used 207 kWh of electricity. Multiply 207kWh against your rate, let’s use €0.32. Multiply the two, and that means your monthly usage costs would be €66.24. Check this amount against the amount you pay each month, and you will be able to track if you will require a year-end payment.
The same calculations will work with your gas and water meters, except the unit of measure would be cubic meters instead of kWh.
If you are unsure where to find your rates, you can contact the UTAP office at 480-5309 or the 86th CES Energy Team at 480-3723.