Information on the electricity price brake

In order to further reduce the burden of high energy prices on consumers, the December emergency aid for natural gas and heating customers will be followed by price brakes on electricity, natural gas and heating on the 1st of March 2023.

As things stand today, the price brakes will apply until the 31st of December 2023, but can be extended up to and including April 2024 by the Federal Government.

They are a focal point of the government's relief package and are financed from federal funds.

You can find all relevant information and decisions made by the Federal Government on the homepage of the Federal Ministry for Economic Affairs and Climate Protection.

Of course, we will implement all relief measures for our customers following the legislative guidelines. 

We put together the most important information on the electricity price brake for you here. 

forum 
Questions and answers 
on the topic you can find >> here

The essentials in brief

How does the electricity price brake work?

With the electricity price brake, 80% of your annual consumption* is capped at 40 cents per kWh (gross) 



The price brake has been applied since the 1st of March 2023.
 

* usually the current annual consumption preview of the grid operator or the annual consumption of 2021 (e.g. when using an intelligent measuring system).

For whom does the electricity price brake apply?

The price cap of 40 cents/kWh gross applies to private households as well as small and mid-sized companies with an annual consumption of up to 30,000 kWh.



For companies with an electricity consumption of more than 30,000 kWh or with a registered power measurement (RLM-customers), there are different regulations.

Learn more >>

How do I receive the relief?

Since March 2023, the monthly advance payment has been reduced by the calculated amount of relief. Every customer received an information letter on this topic.

Calculate the amount of your relief with the price brake calculator 

The electricity price brake calculator by the Stadtwerke Energie calculates 

How does the electricity price brake work exactly?

Starting point is the previous annual consumption known to the grid operator. In certain cases - for example when a smart metering system is used - the consumption from 2021 is used. 

For 80% of this consumption quantity, the customer pays the fixed reference price. The remaining 20% is charged at the contractually agreed price. A potential over- or underconsumption is settled through the annual consumption bill. 

Good to know: The consumption quantities saved are reimbursed at the agreed contract price.


 

Example for the calculation of the relief amount

for a household with an annual consumption of 2,000 kWh and a contractually agreed consumption price of 60.51 cents/kWh gross

The calculated relief amount will be distributed evenly over the months of the year and reduces the advance payment amount to be paid.

If there is a price adjustment during the relief period, the relief amount is also recalculated.

Which price is used for the calculation of a time-variable tariff (dual tariff)?

With time-variable tariffs, an average price is used to calculate the relief amount. This average price is calculated based on the duration of the tariff levels. For example, if a low tariff (NT) is effective from 10 p.m. to 6 a.m., it is included in the average price with 8 hours while the more expensive tariff (HT) is included with the remaining hours. It does not matter how much is consumed during these hours. Since the higher tariff - in which usually less is consumed - is included in the calculation of the average price with more hours, the relief amount increases accordingly.


 

This is how the relief amount is calculated

Example for a household with 2,000 kWh annual consumption and a contractually agreed consumption price of 60.51 cct/kWh gross as well as an annual base rate of 131.76 € gross.

Previous monthly instalment without relief 111.83 € (2,000 kWh x 60.51 ct/kWh + 131.76 € base ratre per year ) / 12 months

Monthly relief within the price brake 27.35 € (60.51 ct/kWh - 40.00 ct/kWh) x 1,600 kWh / 12 months

 

If a payment via instalment - usually monthly - is agreed upon with the customer, the current amount of instalment is reduced by the amount of monthly relief. For the months of January and February, the relief is factored in retroactively and is considered in the instalment of March.  

Please note:

Should during this retroactive settlement the instalment amount for March fall below 0€, the amount to be paid in March will be 0€. The difference will be applied toward the next invoice. 

help How does the brake work if ...

arrow_forward ... you're already our customer 

Your consumption price for electricity is above the price cap of 40 cents per kWh: 

Then you have already received a letter from us in which we inform you about: 

  • Your relief quota - i.e. what amount of electricity you receive for the capped price
  • Your relief amount for the year or the months 
  • Your billing amounts reduced by the electricity price brake

You can find an example of a calculation for an average household with an annual consumption of 2,000 kWh here on our information page.


Your consumption price for electricity is below the price cap of 40 cents per kWh:

If your consumption price is below the reference values of the price brake, you will of course continue to pay the contractually agreed cheaper price.

looks_one You have chosen a different jenaturStrom product?
It is easiest if you change your product online in our customer portal. Otherwise, our customer service is also happy to take care of your concerns. 

looks_two Order and contract confirmation 
After placing your order, you will receive an order and / or contract confirmation, depending on the agreed start of delivery. 
looks_3 Important! Report meter reading 
Please report your meter reading to us the day before your supply under the new tariff starts. We will inform you about the start of delivery in your order or contract information. It would be best if you reported your meter reading online. To do this, you will need your customer- and meter number. 
Report meter reading

looks_4 Information regarding the price brake and relief 

Under the price brake, your change of product leads to a change in relief. We will send you more information on this topic in a separate letter.

arrow_forward a change of supplier is planned:

Important to know: In this case, you have to ensure that the consumption that is to be taken into account for your relief can be used as a basis. For this, it is necessary that you submit your final invoice, which must contain the following information:

- the amount of your calculated relief quota
- the calculated total relief and the relief amounts that have already been disbursed

As long as we do not have this information, it is not permitted to take the price brake into account when the supplier is changed.

Please note: It can take up to 6 weeks before you receive the final invoice that contains said relevant information.

New customers of the Stadtwerke Energie receive an information letter regarding their relief as soon as they send us the final invoice of their prior supplier as proof.

 

 


 

 

forum Questions and answers

Your are entitled to the electricity price cap of 40 cents gross per kilowatt hour if:

  • Your are a private household or a small or mid-sized company and
  • you consume up to 30,000 kWh electricity per year (for private household the average is 2,000 kWh per year) and
  • your gross consumption price is above 40 cents per kilowatt hour.

The first time you will receive relief by means of the electricity price brake will be March 2023. During this process, you will also receive relief retroactively for the months of January and February. 

In a letter, we have already informed you about your individual relief and the reduced billing amounts resulting from this.

The determination of the annual consumption of electricity is based on a different legal regulation than for gas and heat. For most customers with a consumption of up to 30,000 kWh, the current annual consumption forecast by the respective network operator applies. You will receive the projection in your information letter on the price brakes.  

Why does the annual consumption, on which my relief is based, differ?

There can be various reasons for this. The respective network operator usually updates the consumption recorded for you as part of the annual billing process, which we carry out for each customer at a different time during the year. This can lead to a delay of data transmission between the energy supplier and the grid operator caused by the system and thus to different meter readings.

The consumption recorded by the grid operator therefore often does not correspond to the value that is shown on your bill, for example. In addition, it must be taken into account that the billing often includes periods that do not correspond to the consumption of a full calendar year - i. e. 365 days.

Since March 2023, the monthly instalment is automatically reduced by the relief amount calculated. You do not have to do anything. Every customer has already received an information letter regarding this topic.

Do you still want to adjust your advance-payment? Due to the very high effort required by the system to implement the energy price brakes, it is currently not possible to adjust advance payments. We kindly ask for your understanding. 

With the implementation of the price brakes, it is not necessary to send us your meter reading for the time being. The annual consumption forecast of the grid operator or, in special cases, the annual consumption in 2021 will be used to calculate your individual relief amount.

If you want to send us your meter reading nevertheless, the best way to do this is online.

Your annual bill is due? Usually, your grid operator informs you when your meter reading is to be read, or that you should report it on a specified day.

Are you changing your jenaturStrom product? In order to be able to bill you correctly during the transition period between the two tariffs, it is important that you inform us of your meter reading the day before the new tariff applies.

If you live in a rented property and your electricity consumption is part of the incidental rental costs, the relief will be included in the calculation of your advance payment of operating costs or the corresponding bill of utility cost that you receive from the proprietor. 

If percentage discounts - such as the 3 % discount on the electricity bill - have been agreed with you, they will continue being granted. 

The corresponding discount will be deducted from your consumption price. If the gross price per kilowatt hour consumed continues above the cap of 40 ct/kWh, the price brakes takes effect.

Your relief is then calculated as follows:

(contractually agreed consumption price minus discount granted - reference price) x 80 % of annual consumption = annual relief amount

Note: Please consider gross/net rules in the calculations

The Electricity Price Brake Act (Strompreisbremsengesetz Strom PBG) stipulates that the current annual consumption of the grid operator must always be applied. In most cases, your annual electricity bill will result in a change in consumption. This changes your relief quota (80% of your annual consumption) and thus also the relief amount.

After receiving your bill, we will inform you about changed values in a separate letter.

If there is a price adjustment or other contractual changes (e. g. new electricity package) during the relief period, your relief amount will be re-calculated.

After receiving your price adjustment letter or contract confirmation, we will inform you in a separate letterabout the changed relief.

Saving energy is still the call of the hour. 

Because: With the electricity price brake, you only receive 80 % of your projected annual consumption at the capped price. For each additional kilowatt-hour consumed, you have to pay the contract price. 

Saving energy is still the call of the hour

How do the price brakes work?

In this video, Ines Eckert (head of corporate communications), how the price brakes for electricity, gas and heat work.