M. Martensen & R. Kunkel
Wholesale energy prices have never been this high. Here at Ostrom, we’ve also had to increase our prices throughout the year in response to this energy crisis—but in keeping with our One Fair Tariff (unique in Germany), as wholesale prices decrease, we’ll decrease our prices too (as we did on 15.12.2022 or on 12.01.2023).
Despite the recently falling prices, German consumers were hit hard in 2022. To provide some relief, the government has responded with an energy relief package called the Strompreisbremse, which translates to “Energy Price Brake”.
On paper, the Strompreisbremse is simple: If your unit rate is higher than 40 ct/kWh, then the following applies:
But if you are with Ostrom, and as we are in almost all zip codes already below the 40 ct/kWh, you will only pay the market rate for all your consumption.
Officially, the Strompreisbremse begins January 2023. However, the law was adopted not long before the end of 2022, and it takes time to implement all requirements. Because of this, your monthly deposit will be automatically adjusted from March 2023 onwards.
The idea is that you’ll be relieved of high energy bills while still having the incentive to reduce your energy consumption. This is why the Strompreisbremse is calculated using your base consumption from 2022.
Simplified Example assuming the unit rate would be 60 ct/kWh:
(Again, Ostrom is in almost all cases already below the Strompreisbremsen threshold of 40 ct/kWh)
The grid forecasts that your annual base consumption is 2000 kWh.
But if you consume 10% (= 200 kWh) less, so in total only 1800 kWh, you will save only from the amount of the market rate:
In conclusion: If you manage to consume less electricity than forecast, you win as it will be deducted from the amount of the higher market rate. But again, if your rate - as it is in most cases at Ostrom - is below the 40 ct/kWh, you will obviously only pay the cheaper rate for all your consumption.
The local grid forecasts your annual base consumption for 2023 by reading your meter to determine how much you consumed in 2022. The grid then sends this number to Ostrom, and we must use that to calculate the 80%.
If you just moved in—especially if you moved to a new build completed in 2022—then the forecast could be a little off:
Unfortunately, there’s nothing we can do about this, as it’s up to your local grid to make the forecast.
If you only switched to Ostrom recently, it won’t affect your consumption forecast because the local grid takes consumption readings from your meter, which has nothing to do with your electricity provider.
If you’ve read this far, you’ll know the savings will differ depending on a few things. Below you’ll find some calculations based on consumption estimates for 2-person household, but we’re also improving our tariff calculator to include the Strompreisbremse—so stay tuned!
At market rate 41 ct/kWh:
At market rate 50 ct/kWh:
As mentioned the Strompreisbreisbremse will take effect from January 2023 onwards and we implement it according to the law: If your unit rate in March 2023 is still above 40 ct/kWh, which only happens due to local grid fees, we already credited you the relief amounts which are automatically applied to you next monthly deposit. If your rate is already below the Strompreisbremse - as it is for almost all of our clients, by law you are not eligible for the Strompreisbremse and won't receive the savings of January and February. We are only following the law in this regard and think this rule does not seem logical.
In case your rate remains still above 40 ct/kWh, we will automatically adapt your monthly deposit. And no worries, if energy prices keep decreasing, we will pass on those savings directly to you!
Absolutely nothing. As mentioned above, we have already implemented everything!
Ostrom, as a supplier, will receive the Strompreisbremse funding from the transmission system operator in March 2023. This amount is also based on the grids’ annual consumption forecast. This subsidy pot consists of excess profit tax from energy generation companies and some government funds.
You can always reach out to us in the live chat or at firstname.lastname@example.org.
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