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ENERGY

Household electric bills ‘billions too much’

Households in Germany pay around €3 billion too much for their electricity each year, according to a market analysis which says industry is benefitting from state aid for the switch to renewables – but domestic customers are being left out.

Household electric bills 'billions too much'
Photo: DPA

Sinking prices at the electricity exchange in Leipzig, where prices are arranged, are passed on to industrial customers but not to households, said Gunnar Harms, an energy expert, in a report commissioned for the Green Party.

Deputy leader of the Green parliamentary party Bärbel Höhn told the Tagesspiegel newspaper this was evidence that the government was pushing through the change in energy generation from nuclear and coal to more renewable sources, “at the expense of consumers.”

And prices are only set to increase this autumn, according to Environment Minister Peter Altmaier, the paper said. Altmaier has warned that the additional burden due to a fixed price being set for 20 years in order to pay for the change to renewable energy, would rise by around five percent next year.

Currently domestic and commercial customers pay a 2.6 cent per kilowatt hour contribution for renewable energy. A further 3.2 cent is levied in taxes.

Industrial customers pay around 10 cent per kilowatt-hour, while domestic customers pay more than 26 cents, said Harms.

A major factor in the difference is that companies with high consumption have been let off a large part, and in some cases, all the renewables subsidy.

An average household which uses 3,500kilowatt hours a year pays €125 a year for renewables, of which €31 is due to the exclusion of industrial customers from paying a share, he said.

The Local/hc

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BUSINESS

France’s EDF hails €10billion profit, despite huge UK nuclear charge

French energy giant EDF has unveiled net profit of €10billion and cut its massive debt by increasing nuclear production after problems forced some plants offline.

France's EDF hails €10billion profit, despite huge UK nuclear charge

EDF hailed an “exceptional” year after its loss of €17.9billion in 2022.

Sales slipped 2.6 percent to €139.7billion , but the group managed to slice debt by €10billion euros to €54.4billion.

EDF said however that it had booked a €12.9 billion depreciation linked to difficulties at its Hinkley Point nuclear plant in Britain.

The charge includes €11.2 billion for Hinkley Point assets and €1.7billion at its British subsidiary, EDF Energy, the group explained.

EDF announced last month a fresh delay and additional costs for the giant project hit by repeated cost overruns.

“The year was marked by many events, in particular by the recovery of production and the company’s mobilisation around production recovery,” CEO Luc Remont told reporters.

EDF put its strong showing down to a strong operational performance, notably a significant increase in nuclear generation in France at a time of historically high prices.

That followed a drop in nuclear output in France in 2022. The group had to deal with stress corrosion problems at some reactors while also facing government orders to limit price rises.

The French reactors last year produced around 320.4 TWh, in the upper range of expectations.

Nuclear production had slid back in 2022 to 279 TWh, its lowest level in three decades, because of the corrosion problems and maintenance changes after
the Covid-19 pandemic.

Hinkley Point C is one of a small number of European Pressurised Reactors (EPRs) worldwide, an EDF-led design that has been plagued by cost overruns
running into billions of euros and years of construction delays.

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