Due to the war in Ukraine, the electricity price has multiplied in some cases to more than 50 cents per kWh. The state has taken countermeasures by putting a brake on electricity prices, but the brake is now counterproductive. Households should check their rates.
To cope with high energy prices, the state launched the so-called electricity price brake at the end of 2022. The state pays a maximum of 30 cents per kWh, and households pay ten cents per kWh. Politicians recently announced that they will reduce the subsidy from a maximum of 30 cents to a maximum of 15 cents per kWh from July 2024. However, the decision on this is still pending.
Some experts have been calling for a reduction or complete abolition for some time. “Electricity prices have fallen significantly recently. The rates for private households are now even below the level of the electricity price ceiling of ten cents,” emphasizes Martin Spona, head of the Durchblicker comparison portal. In principle, anyone with such a rate no longer needs an electricity price ceiling. Moreover, the measure, sensible as it was, now has a major disadvantage.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
