BDEW Presents Post Election Demands and Highlights Taxes and Duties on Electricity Bills

On the occasion of this year’s annual meeting, the Federal Association of the Energy and Water Industry (BDEW) presented its energy policy demands for the federal government to be elected in September 2013. It expected taxes and duties on the electricity bills to reach the record sum of EUR 31.6 billion, exceeding a 50% share of the bill for household customers for the first time, the association pointed out.

Hildegard Müller, head of BDEW, said the following five measures had to be implemented gradually after the election to accomplish the energy transformation towards a mainly renewable energy supply Germany agreed on in 2011.

  1. Greater coordination between the federal government and the federal states and a good project management;
  2. Restructuring of the energy supply system to make it more market-oriented. BDEW pointed out that it had already proposed a so-called “Strategic Reserve Model” (Strategische Reserve) to ensure the security of supply as a first step. Furthermore, a long-term strategy for the market  for conventional (non-volatile) power had to be found in view of the growing amount of (volatile) renewable power that receives above market price feed-in tariffs, rendering (the still needed) conventional power plants economically unattractive. BDEW had listed general requirements for “capacity mechanisms”, Mrs Müller said, adding that a strategy had to be found that was focused on keeping up the security of supply;
  3. Regarding a reform of the support for renewable energy BDEW said three things were essential:
    • Mandatory direct marketing for new renewable power plants (This had also been proposed in February by the Economics and the Environment Minister).
    • Coordinated market growth targets of the government and the federal states.
    • More market incentives to manage the growth of renewable power in view of the need to limit the overall costs and react speedily to negative developments;
  4. An amendment of the regulatory framework to support the necessary investments associated with enhancing and expanding the grids, in particular the distribution grids, to connect and integrate renewable power plants (regarding a recent government decision concerning the amendment of various ordinances relating to electricity and gas grid charges, please see here);
  5. Given the fact that the government wanted to reach almost half of its CO2 emissions saving target in the heat market, greater efforts had to be made. This was worthwhile as the heat market accounted for 40% of the final energy consumption and two-thirds of the CO2 emissions in Germany while two-thirds of the heating systems in building were not state of the art.

Source: BDEW

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