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German power grid companies raise renewable levy by 47% in 2013

The four power transmission network operators in Germany, 50Hertz, Amprion, TenneT and TransnetBW, have announced an upcoming raise in the renewable charge as of 2013. The added levy on electricity prices for renewable energy will increase by 47%, from €3.6c/kWh to €5.3c/kWh. For an average household with an annual consumption of 3,500 kWh, the renewable fees will rise from €125/year to almost €185/year.

The main reason for the strong tax increase is the replacement of nuclear (scrapped by 2022) with renewables and cleaner-burning gas- and coal-fired units. The announcement aroused a dispute within the German government over better options to limit the impact of this raise on energy bill for households. Options are the reduction of the cost of renewables by implementing renewable capacity cap accompanied with free energy-efficiency advices or the reduction of of the federal tax on electricity.