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many German industrial companies are exempt from paying EEG, they profit from the current regulations

That's the key fact here: the EEG surcharge is a subsidization of consumers who got the "exemptions" by those who didn't, and the surcharge increases if more exemptions are granted. Another issue with the surcharges is that they were created under the erroneous assumption that renewables will not influence market prices, whereas they actually drive market prices down (increasing the surcharge). If politics were about rational decisions, the conclusion would be to drop the exemptions altogether.

A second issue is that AFAIK even the core retail price (without taxes, levies and EEG surcharge) doesn't follow the decline in spot market prices. (Maybe it's on one of your diagrams, but my office content filter blocks all but one of them.)

*Lunatic*, n.
One whose delusions are out of fashion.

by DoDo on Wed Jul 3rd, 2013 at 07:18:35 AM EST
> AFAIK even the core retail price (without taxes, levies and EEG surcharge) doesn't follow the decline in spot market prices

That would point to monopolistic rent-taking on he local level. Intterrresting...

by mustakissa on Wed Jul 3rd, 2013 at 07:27:03 AM EST
[ Parent ]
I wonder if statistics exist as to the extent to which firms purchase directly from the spot market as opposed to being supplied by local utilities. This could be a real issue for the Mittelstand, but one that could be solved by working with sectoral associations to create common purchasing on the spot market.

Moreover, I just read an article about the potential to used compressed air storage to time shift the delivery of electricity.  With industrial firms, the door seems to exist for district compressed air lines that directly run machinery.  Again, this points to an associational solution.

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg

by ManfromMiddletown (manfrommiddletown at lycos dot com) on Wed Jul 3rd, 2013 at 07:43:15 AM EST
[ Parent ]
Could you expand on that? I'm not following you.
by Bjinse on Wed Jul 3rd, 2013 at 08:46:13 AM EST
[ Parent ]
Core retail price, thanks - still catching up with jargon as I go along.

I presume your filter blocks pictures hosted at Photobucket, but two diagrams were lifted from this BDEW pdf - also showing an increase in the core retail price. I also read that in Germany distribution costs have actually come down across the years.

by Bjinse on Wed Jul 3rd, 2013 at 08:40:07 AM EST
[ Parent ]
Yes, it's Photobucket and other major filehosts which are 'filtered' 100% on the basis of possible pornographic content, so said the email announcing the filter a few months ago... I can't see my own Photobucket uploads from work. As for the BDEW pointer, thanks!

Regarding "core retail price", don't take my word on it, the precise English term might be something different. In the linked BDEW document, the German term is "Versorgeranteil" = "the producer's share".

The interesting part is the contrast in "the producer's share of prices" shown on page 5: prices for industry connected to mid-voltage lines (left) and private households [connected to low-voltage lines] (right). The former do show a drop in prices reflecting the spot price decline, albeit only this year (spot prices declined last year already).

*Lunatic*, n.
One whose delusions are out of fashion.

by DoDo on Wed Jul 3rd, 2013 at 11:21:32 AM EST
[ Parent ]
How much the difference in retail price and spot price results from spot prices being lower when consumers and small firms do not use electricity? Small firms are usually closed during nights and weekends while spot prices tend to be lowest during windy nights and summer weekends.
by Jute on Thu Jul 4th, 2013 at 03:19:11 AM EST
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