Options for more transparency in electricity network charges

Project background

Network charges account for more than a fifth of household electricity bills in Germany. In 2018, the total volume of grid fees was estimated at EUR 24 billion. Although the fees are regulated by the state, the current practice for determining network fees in Germany is incomprehensible and lacks transparency.

For the project “Options for more transparency in electricity network charges” the Verbraucherzentrale Bundesverband e.V.  (vzbv; federal consumer association) commissioned the consortium of Arepo and von Bredow Valentin Herz Attorneys at Law to review the current system of network charges for possible transparency deficits and to develop an alternative transparent legislative proposal.

Type and scope of services

Arepo was responsible for project coordination. In addition, Arepo was responsible for defining transparency and comprehensibility and identifying which issues electricity network charges are facing in that regard (work package 1). Furthermore, Arepo’s task was to work out relevant data that are decisive for determining the individual components of the electricity network costs of private consumers. The aim was to assess which information and data are necessary to safeguard the interests of consumer protection.

On May 25, 2020 vzbv published the study in a press release.

The study has already been replicated several times in the German media, including in the print edition of the Spiegel (No. 22 / p.2) and at finanzen.net.