Electricity price reduction in Neuruppin: This is how households can save from 2024!

Electricity price reduction in Neuruppin: This is how households can save from 2024!

A ray of hope for households in Neuruppin: From January 1, 2024, Neuruppin municipal utilities will reduce electricity prices. While the basic price increases by 1.75 euros per month, the labor price falls by 2.38 cents per kilowatt hour. This means that average households with an annual consumption of 2,500 kWh can save around 38.45 euros annually. However, there are exceptions, as households that consume less than 884 kWh will not benefit from the savings due to the increased basic price. Guido Gerlach, commercial manager of the municipal utility, explains that the price reduction could have been more significant despite a small margin.

The reason for the limited reduction lies in new regulations at the federal level. These changes primarily relate to network fees, which make up a significant part of the electricity price. A fifth of the electricity price is generated by these fees. The Federal Network Agency plans to make the distribution of network fees fairer, especially in eastern Germany. For 2026, network fees are expected to fall by 2.24 cents per kWh, while other levies will rise at the same time. A household with an annual electricity consumption of 3,500 kWh could expect around 100 euros in relief from this reports the federal government.

Price reduction factors

Eliminating the electricity tax would have the potential to reduce the price of electricity by an additional 2 cents per kWh. Fortunately, the federal government is planning to reduce electricity tax for companies and businesses, which will result in lasting relief for around 600,000 manufacturing companies as well as farmers and foresters. On average, a household could save up to 150 euros annually by eliminating the gas storage levy and lower network fees, although the actual savings still depend on various factors, such as consumption behavior and the quality of the insulation in the living space.

The Neuruppin municipal utilities are also confronted with additional costs, as they will have to raise around 300,000 euros more for the use of the Edis substation from 2027. Given these financial challenges, it is noteworthy that the municipal utility will inform 21,000 of its customers in writing about the new prices in order to create transparency and increase consumer trust. Future developments in electricity prices continue to depend on federal regulations.

Tariff overview and future outlook

A new tariff was introduced for the basic supply, which is 31.42 cents per kWh and a monthly basic price of 12.24 euros. The cheapest tariff “Ruppin relax” is particularly attractive, which also offers a basic price of 12.24 euros per month at 28.58 cents per kWh. Customers who are thinking about switching energy suppliers may be able to save additional money.

Overall, it is clear that the upcoming adjustments in electricity prices will be influenced not only at the regional level, but also by federal measures. The combined effect of different funding measures, such as the federal subsidy of 6.5 billion euros from the Climate and Transformation Fund (KTF), could contribute to around 10 billion euros in relief for households and companies next year. Stadtwerke Neuruppin has not been left untouched by these changes, and all eyes are on how the price adjustments will encourage citizens' monthly spending.