Electricity is becoming more expensive: the federal government is cutting subsidies and CO2 prices are rising - what consumers can now expect.

Electricity is becoming more expensive: the federal government is cutting subsidies and CO2 prices are rising - what consumers can now expect.

According to a report by www.t-online.de, Germany is facing a significant increase in electricity costs from 2024. There are many reasons for this. On the one hand, the state subsidy for network fees amounting to 5.5 billion euros will no longer apply, which will lead to a doubling of network fees from 3.12 cents/kilowatt hour (kWh) to 6.34 cents/kWh. On the other hand, the CO2 taxes for power plant operators will rise from 40 euros to 45 euros per ton of CO2. According to experts, these developments lead to an increase in electricity bills by 10 to 20 percent. The initial hope of falling energy costs has been dashed by expert statements suggesting a doubling of gas and electricity tariffs.

Impact on the market and the financial industry

The developments mentioned will have a noticeable impact on the German electricity market. Rising costs could cause consumers to reconsider their energy consumption and increasingly seek alternative energy sources or providers. Furthermore, the increased burden on private households and companies could lead to increased demand for energy efficiency measures and products. There is an opportunity for the financial sector to develop offerings in the areas of renewable energy and energy efficiency in order to meet the increasing demand in this area.

It remains to be seen how the markets and providers will prepare for the changes and what new opportunities will open up in this dynamic environment.