New index for electricity prices for industrial customers on SMARD
Year of issue 2024
Date of issue 2024.12.18
The Bundesnetzagentur will as of today be publishing a new index for electricity prices for industrial customers on its energy market data platform SMARD. Monthly charts will provide a clear overview of the development in electricity prices for industrial customers and create transparency in assessing the current market situation.
"We are watching the trends in electricity prices very closely. The electricity price index for industrial customers also takes into account possible economic relief for companies. It creates a more detailed basis for looking at developments in the market,"
said Klaus Müller, President of the Bundesnetzagentur.
Spotlight on transparent developments in prices
The new electricity price index for industrial customers is based on a detailed calculation model that takes into account all the relevant cost components, including network tariffs and fees, surcharges, taxes, distribution costs and margins, and procurement costs. The procurement costs are modelled on the basis of a typical procurement strategy of suppliers of electricity to industrial companies. The corresponding figures for the base month of January 2021 are used as a reference period. This enables long-term developments in prices to be presented transparently without distortion caused by crisis-related extremes.
Status quo in November 2024
The electricity price index for industrial customers makes a distinction between companies with and companies without possible reductions. Companies meeting certain statutory requirements are eligible for reductions in the prices they pay for their electricity. This applies above all to large companies with a high and constant level of consumption (or “permanent load”). Eligible companies may pay reduced or even no network tariffs, surcharges, concession fees and electricity taxes. Smaller companies not meeting the requirements do not benefit from these reductions. This distinction is an important factor when looking at developments in prices.
In November 2024 the electricity price index for industrial customers not eligible for any reductions stood at around 102%, two percentage points higher than the price level in January 2021. The price index for companies eligible for reductions was 168% and so 68 percentage points higher than pre-crisis levels. The main reason for this is the increase in energy procurement costs. In the case of companies not eligible for any reductions, these higher procurement costs were largely offset by the abolition of the surcharge under the Renewable Energy Sources Act (EEG).
Background
The Bundesnetzagentur publishes up-to-date figures relating to the German electricity market on its SMARD data platform. The "Energy data compact" section contains downloadable charts with data gathered as part of the Bundesnetzagentur’s monitoring survey. The Bundesnetzagentur published the first electricity and gas price indices for household customers in September 2024. The electricity price index for industrial customers supplements these, providing a new focus on price developments in the industrial sector. Further information is available at https://www.smard.de/page/home/topic-article/211972/215546