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.'”
5 responses to “Exorbitantly Expensive Green Energies Prevent Plunging Market Prices From Reaching German Consumers”
EU decides to regulate plastic bags out of existence over time in their normal gradualist fashion; of course with no regard to what the proles say.
What’s interesting is how Spiegel/Bertelsmann wryly notes how the diktat will be worked through the EU system; like a train schedule, yeah well we will have a debate here and a committee there and the prohibition in January.
The prole is getting programmed to accept that these things happen with celestial unstoppability. A new gnosticism.
The expression, “Why sweat the small stuff..” seems appropriate if you failed to stop the imposition of monstrous industrial wind developments (and associated ugliness)in defiance of many splendidly rational arguments.
Oh, and it should be added – while the Greens and the government parties are proclaiming that now the age of rising energy prices is over, the real reason for the tiny price drop is that in the critical month of August, usually the month with lowest clouds and high insolation, all of Germany was covered in clouds nonstop this year – totally wrecking solar production – and if your planned economy produces much less of the loss-leading product, well, then your planned economy makes less of overal losses, and the peons will have to suffer less when the next plan is made.
If we’re lucky we’re having even more clouds next year! This is the perversity of solar power in Germany: Our economy profits the more, the less we produce of it.
Yes, there is something truly Orwellian about this whole thing.
The true costs and limitations of the Energiewende are becoming known now.
Amazingly, the majority of Europeans still believe the Märchen that “Renewable” or “Sustainable” means more jobs, a healthy economy and a bright future.
There is a short article in this week’s Weltwoche on “Flatterstrom” by an economist.
Very concise and to the point. I’ll let Pierre know.
Kurt in Switzerland
Kurt in Switzerland
22. November 2014 at 09:38 | Permalink | Reply
“Amazingly, the majority of Europeans still believe the Märchen that “Renewable” or “Sustainable” means more jobs, a healthy economy and a bright future.”
I think in the distant past a majority of people were kept stupid by analphabetism and constant work on the fields as bondsmen. Today, they are kept stupid by the state school curriculum and state TV.
Not much of a change but they’re smart enough to read their orders now.
Make sure you tell them how free they are all the time. Keeps’em calm.