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ENERGY

Electricity bills to increase by €60 a year

Germany's transition to renewable energy is likely to cost a three-person household €60 a year as the so-called EEG reallocation charge will rise from 3.6 euro cents to 5.3 cents per kWh in 2013, it emerged Monday.

Electricity bills to increase by €60 a year
Photo: DPA

Germany’s electrical grid operators Monday said they were increasing the charge on consumers which finances subsidies for renewable energy, by 47 percent.

Consumers will be asked to pay 5.277 cents per kilowatt hour of electricity consumed in 2013, the firms announced, compared to a 3.592-cent surcharge this year.

For an average three-person house, this 47-percent increase amounts to an additional €60 per year to around €185 in add-on power taxes. A family of four that consumes 4,500 kWh a year can expect to pay around €90 more.

In total, the network operators hope to collect more than €20 billion to finance renewables.

On Thursday, German Environment Minister Peter Altmaier said that Europe’s top economy wanted to have 40 percent of its energy needs from renewable sources by 2020, up from a previous target of 35 percent.

Germany decided in the immediate wake of Japan’s 2011 Fukushima nuclear plant disaster to shut down its nuclear reactors by 2022 and ramp up the use of renewable energy.

Chancellor Angela Merkel has made the Energiewende, the term used to describe both the end of nuclear power and the promotion of renewable energy sources, one of her government’s priorities.

But the policy has run into difficulties, notably due to technical and financing problems as well because of local resistance to building new power lines.

But part of the reason for the increase is the success of the energy transfer. German solar energy has experienced a boom, with more and more Germans attaching photovoltaic panels to their roofs. Wind energy parks have also been expanded rapidly.

But this means that the companies involved are entitled to a guaranteed payment for the electricity they produce for the next 20 years. The difference from the market value is to be passed onto the consumer via the EEG reallocation charge.

Economy Minister Philipp Rösler warned on Monday that the energy transition could also cause widespread energy shortages this winter.

“We already had a strained situation last winter,” he told the Passauer Neue Presse. “That is likely to happen again this winter and next winter.”

The Local/AFP/bk

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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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