Paris is planning organised power cuts to save energy in winter while at the same time Germans are rubbing their eyes at the increased electricity bills they are receiving.
In Europe it is now apparent that an energy heatwave is brewing due to the war in Russia and the sanctions that followed which has prompted Emmanuel Macron to launch a communication counterattack to calm the anxiety in households and businesses. At the same time Germany is introducing a cap on the price of electricity from January in order to relieve the population from the dramatic increases and provide incentives to reduce consumption.
The inflated bills
Electricity bills in Germany have received significant increases in recent days. For example, a company in Cologne is to more than double its prices in January. Furthermore, they are now asking its customers, who as is customary in Germany pay for electricity in advance, 55 cents per kilowatt hour, which corresponds to a 130% increase[/B] compared to the last months of 2022.
Deutsche Welle notes in its report that the provider, in justifying the skyrocketing price increase, points to higher electricity supply costs. "Compared to last year, costs on electricity exchanges have risen by more than 300%. In some periods the price has even risen tenfold. At the same time, grid usage fees have also increased'. The main reason for the spike in electricity prices is the dramatic rise in the price of natural gas due to the Russian invasion of Ukraine.
60% increases in Germany
The online price comparison portal Check24 has already recorded more than 580 cases of electricity price increases since January: "It affects around 7.3 million households," the website says, noting that increases are averaging more than 60%. Another online price comparison portal, Verivox, puts the increase at 54% based on different figures.
[/P]The rise in electricity prices varies from state to state. For example, the municipal utilities in Potsdam in Brandenburg are increasing prices by 21% to 46.5 cents per kilowatt hour. In Munich, Bavaria, the price of electricity at the municipal utility will reach 62 cents as of New Year's Day, whereas up to now it has been only 25 cents.
Interestingly, even before the war in Ukraine electricity prices in Germany have risen significantly with the change of the year. According to the website Check24 in November 2020 an average household with an annual consumption of 5,000 kilowatt-hours paid 29.4 cents for each kilowatt-hour. A year later it was 31.6 cents and this November it was 42.7 cents.
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Electricity price cap
With the electricity price cap the German government aims to relieve the population from dramatic increases. For households and small businesses it provides for a maximum price of 40 cents per kilowatt hour up to 80% of last year's electricity consumption.
It thus gives citizens and businesses an incentive to save electricity. The cap comes into force in March 2023, but will be retroactive for January and February. Several details still need to be clarified before the law is passed.
How will electricity prices develop in the new year?
Electricity market expert Mirko Slosarchek from the consulting firm Enervis believes, speaking to the German news agency dpa, that in the coming years prices for households will not fall back to pre-war levels in Ukraine.
He takes it for granted that in 2023 and 2024 prices will be around 40 cents per kilowatt hour. The German expert does not even rule out prices of around 50 cents after 2024. And he stresses that duties, levies, fees and taxes make up the bulk of the final electricity price.
French people are worried about possible blackouts
In France, the population has been worried for days about the cabinet's plans for possible hourly power cuts in winter in order to save energy. The outages will affect around 6 million people at the same time and even include schools. President Emmanuel Macron has now taken a stand on the issue.
"No panic" are the words used by Emmanuel Macron to reassure the French about the possible blackouts, for which the French utility, EDF, is actively preparing.
As soon as he returned from his visit to the United States, Emmanuel Macron tried in interviews and statements to defuse the new energy crisis at home, which has begun to swell with strikes and demonstrations. "There is no need to panic," he explained yesterday, "it is perfectly normal for the government to prepare for an extreme situation, because the years have shown us that sometimes the unthinkable can happen," he stressed.
The word "panic" from the presidential lips finally, does not however seem to have reassured the French. Indeed, given that some exemptions from the blackouts are foreseen for 40% of the population. These include hospitals, police stations and firefighters. The remaining 60% are already starting to worry and protests have begun. First, for example, the teachers' associations are asking for an exemption for schools, and so are some farmers. Drivers think that there will be panic on the roads if the power is cut off at traffic lights.
Source: protothema.gr
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