Information on the price brake on heating

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 1^st of March 2023.

As things stand today, the price brakes will apply until the 31^st 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 heating price brake work?

With the price brake, 80% of your annual consumption* is capped at 9.5 cents per kWh (gross)

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

* usually the annual consumption predicted by the grid operator in September 2022

For whom does the heating price brake apply?

The price cap of 9.5 cents/kWh gross applies to private households as well as small and mid-sized companies with an annual consumption of up to 1.5 mio. kWh.

For enterprises with an annual heat consumption of more than 1.5 mio kWh, customers who are supplied with steam for heating as well as licensed hospitals, different regulations apply.

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.

How does the heating price brake work exactly?

Starting point is the annual consumption projected by the grid operator.

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.

Sample calculation of relief amount

for a household with an annual heating supply of 10.000 kWh (10 MWh) and a contractually agreed working price of 279.02 €/MWh 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.

This is how the relief amount is calculated

Example for a household with 15 kW connected load, an annual heat supply of 15.000 kWh and contractually agreed working and demand rates of 279.02 cct/kWh and 47.11 €, respectively (gross).

Previous monthly instalment without relief 337.91 € (15 MWh x 279.02 €/MWh) + (15 kW x 47.11 €/kW) / 12 months

Monthly relief within the price brake 184.02 € (279.02 €/MWh - 9.5 ct/kWh) x 12 MWh / 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.

forum Questions and Answers

Your are entitled to the heating price cap of 9.5 cents gross per kilowatt hour if:

Your are a private household or a small or mid-sized company and
you consume up to 1.5 mio kWh heating per year (for private household the average is 20,000 kWh per year) and
your gross consumption price is above 9.5 cents per kilowatt hour.

The first time you will receive relief by means of the price brake on heating will be March 2023. During this process, you will also get the relief sum 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.

It is not necessary to report your meter reading to us. For calculating your individual relief amoung, your annual consumption projected in September 2022 will be used as base.

If you live in a rented property and your heating 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.

Saving energy is still the call of the hour.

Because: With the 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.

You can also find more information on the electricity price brake in the FAQ of the Federal Ministry of Economics and Climate Protection.