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Why the electricity price brake is backfiring

The electricity price brake, as sensible as it was, now has a major disadvantage.(Bild: THHORSTEN MALINOWSKI)

Due to the war in Ukraine, the price of electricity has multiplied to over 50 cents per kWh in some cases. The state has taken countermeasures with the electricity price brake - but the brake is now backfiring. Households should check their tariff.

To cushion the impact of high energy prices, the state introduced the so-called electricity price brake at the end of 2022. The state will pay up to 30 cents per kWh and households will pay ten cents per kWh. Politicians have recently announced that they will reduce the subsidy from up to 30 cents to a maximum of 15 cents per kWh from July 2024. However, a decision on this is still pending.

Some experts have been calling for a reduction or complete abolition for some time. "Electricity prices have fallen significantly recently. The tariffs for private households are now even below the level of the electricity price brake of ten cents," emphasizes Martin Spona, head of the comparison portal Durchblicker. If you have such a tariff, you basically no longer need an electricity price brake. In addition, the measure, as sensible as it was, now has a major disadvantage.