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Major Energy Provider Raises Prices: Who Will Pay More Now

Vattenfall Raises Electricity Prices
Vattenfall, the primary energy supplier, significantly raises electricity prices Photo: Getty Images
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November 29, 2022, 11:42 am | Read time: 3 minutes

In times of the energy crisis, many things are becoming more expensive for consumers, especially electricity costs. An electricity provider is now responding by raising prices. However, customers will only feel the impact next year–and only in two cities.

Vattenfall is increasing electricity prices for its customers by 25 percent, effective February 1, 2023. The main supplier is reacting to the increased procurement costs and network charges. However, according to the company, not all customers are affected. Find out here which cities are specifically involved and what amounts are at stake.

Vattenfall Increases Electricity Prices in Two Cities

Vattenfall is initially raising electricity prices in Berlin and Hamburg starting February 1, 2023. “Approximately 1.4 million customers in Berlin and 700,000 in Hamburg will be affected by the current price measure as of 02/01/2023, if they do not have a contract with a price guarantee,” explains Vattenfall spokesperson Sandra Kühberger in response to a myHOMEBOOK inquiry. “Traditionally, the basic supply tariff is communicated with an average consumption that corresponds to a typical household in Berlin and Hamburg.”

According to the provider, a typical household in Berlin on the basic supply tariff “Berlin Basis Privatstrom” with an annual consumption of 2,200 kilowatt-hours will incur additional costs of around 17 euros per month. The electricity costs in the basic supply will rise in the capital from about 33 to 41 cents per kilowatt-hour, representing an increase of about 25 percent. The basic price will also rise from 7.49 to 9.50 euros per month, according to Vattenfall. “Our customers will be personally notified and informed about the price change of their tariff and the cost components,” Kühberger adds.

Related: What is a normal electricity consumption?

In Hamburg, prices in the basic supply will also increase by about 25 percent–from around 33 to 42 cents per kilowatt-hour. Here, consumers on the basic supply tariff “Hamburg Basis Privatstrom” can expect additional costs of around 20 euros per month. However, in Hamburg, an average consumption of 2,500 kilowatt-hours per household is assumed. The basic price will also increase in Hamburg from 9.66 to 11.65 euros per month. According to Vattenfall, even after the increase, electricity prices in both Hamburg and Berlin remain below the national average of 46 cents.

What about other cities? “Outside of Berlin and Hamburg, prices vary locally because, for example, network charges are not uniform nationwide,” Kühberger explains. “A price measure does not take place nationwide at a fixed date but is individually dependent on the respective price guarantee.”

What Does This Mean for the Electricity Price Cap?

To counteract the rapid development of electricity prices, the government has decided on an electricity price cap. This is set to take effect in March 2023 and will also retroactively apply to the period from early January to the end of February. Consumers are to be relieved in the context of the energy crisis–specifically, the cap is set at 40 cents per kilowatt-hour.

This article is a machine translation of the original German version of MYHOMEBOOK and has been reviewed for accuracy and quality by a native speaker. For feedback, please contact us at info@myhomebook.de.

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