Despite plunging energy prices on world markets, electricity prices in Germany refuse to drop anywhere near in proportion.
The reason for this is in large part due to the fixed, guaranteed high prices that renewable energy producers get for the wildly fluctuating power they feed in – no matter what the market does. The result: Power companies must continue paying an exorbitant price and are thereforE unable to pass much of price decrease to the consumers.
On the other hand at the gas and diesel pumps, for example, the price decrease has been considerable – much to the delight of German motorists. Unfortunately the same cannot be said about German electricity, where power companies will decrease the price (for the first time in over a decade after years of steep increases) by only 2.4% on average!
The English language The Local here writes (emphasis added):
Power price drop isn’t all good news
A total of 205 companies – almost a quarter of the 850 power suppliers – have announced an average 2.4 percent drop in prices for 2015 so far according to price comparison websites Verivox and Check 24.
With current prices just over €0.29 per kilowatt-hour (kWh), that could mean between €30 and €35 savings over a year for a four-person average household.
“We’ve never seen such a large number of price cuts,” a Check 24 spokeswoman said.
‘But they’re too late and too small – the suppliers’ savings aren’t being passed on to the consumer.'”