Electricity prices in the north: So it will soon be cheaper for consumers!

Electricity prices in the north: So it will soon be cheaper for consumers!

The special thing about the situation in Germany is that all electricity buyers pay the same wholesale current price regardless of the location. This means that consumers in cities such as Munich, Berlin and Kiel have the same prices, even if the production on site varies greatly. Hans-Hermann Magens, Managing Director of the Raa-Besenbek Bürgerwindpark, points out that the producers of the inexpensive wind power do not benefit from the lower prices that should result from their production.

high network costs in the north

Another factor that keeps electricity prices higher in northern Germany are the network costs. These are subject to strong fluctuations and significantly influence the end consumer prices. From January 2025, a nationwide reform will come into force that aims to reduce the high network costs in the north by 29 percent. At 10.9 cents per kilowatt hour, Schleswig-Holstein will no longer take the upper limit, but a medium position. This could be relieved for many households.

However, the federal states and the federal government face a division into several electricity price zones. Dr. Lion Hirth, professor of energy policy, criticizes this decision and suggests a reform that has already been implemented in other EU countries. According to Deutschlandfunk could create such a division of more flexible prices and incentives for the urgently needed network expansion.

economic effects and future perspectives

The latest studies spark the discussion about the possibility of regional price signals that are necessary for a sustainable energy transition. Economist Achim Wambach suggests that the German energy landscape better balancing to save costs. The bdew has also pointed out the potential savings that could be up to 339 million euros through regionally divided. A proposal even provides for Germany to divide into five different bid zones, which could significantly reduce measures such as the redispatch, i.e. the interventions of the network operators.

All of these developments have an impact on the wind power industry, which hopes for cheaper prices in the north to attract both consumers and companies. Stomach makes it clear that the electricity prices produced should also be attractive in the north to ensure competitiveness.

Overall, the situation remains tense, and the pressure on the federal government to reform the electricity price system is growing. The markets change and it remains to be seen whether the planned changes will actually apply. Finally, the success of the energy transition and the future competitiveness of the region depends on the fact that fair and competitive electricity prices are provided.