The energy market continues to stabilise at lower prices after a turbulent year of record highs. Staying true to our promise, we’re decreasing our prices—just like we did last month—and passing the savings on to all our customers. We’re decreasing the unit rate by up to 19 ct/kWh gross and passing on the updated grid fees, which translates into additional annual savings of 200€ per year for the average German household.
As an Ostrom customer, you always profit from our variable tariff. Every month, we analyze the price development and adjust our working price to the market level. If the electricity price drops, you benefit because we pass the savings on to you. If the price rises again, you are protected by the Strompreisbremse (electricity price brake) and pay a maximum of 40 ct/kWh for 80% of your previous year’s consumption.
The chart above shows the all-time high wholesale electricity costs throughout 2022. Prices have since recovered from their peaks, mainly because temperatures in Germany during this winter are unusually high. Due to the mild weather, households and industries use less heat during these months and save gas. Thanks to the merit order effect, the most expensive power plant, gas, sets the price for electricity (as described in our blog post here).
Lower gas consumption leads to lower prices for gas, hence also affecting the electricity price. High gas storage levels and additional LNG terminals ensure more security for the supply situation in winter.
The Strompreisbremse came into effect in January 2023. However, the law was adopted not long before the end of 2022, and the government as well as the electricity suppliers need time to implement all requirements. Because of this, your monthly deposit will be automatically adjusted from March 2023 onwards. Any difference from January and February will be balanced retroactively, most likely in March 2023.
Of course, we will comply with all legal requirements of the federal government and implement them accordingly. You can read more about the details of the Strompreisbremse here.
This is the second month in a row that we've been able to reduce our prices! And because energy prices tend to drop as the weather warms up, we'll be able to pass even more savings on to our customers after winter. Ostrom customers are getting the best deal by staying flexible with our fair, transparent energy tariff. While a Preisgarantie from another provider may look appealing, in the long run, being locked into a 12-24-month plan is actually more expensive than a flexible tariff (you can read more about that here)
Our promise to everyone: we will keep working hard to continue giving you fair prices and the best customer experience at Ostrom!
Photo by Kaleb Tapp on Unsplash
Ostrom reduces electricity costs for all customers once again! The unit rate will be decreased by 2.25 ct/kWh gross which translates to additional annual savings of 50€ per year, on top of the several hundred euros from our earlier price decreases for the average Ostrom customer.
As Ostrom turns two, we reflect on our challenges and wins and why we're excited about the future!