GERMANY: Regional firm cuts premium for ‘green electricity’

An electricity firm in the Hamburg area has significantly reduced the premium it charges for electricity from renewable energy sources, making renewable energy cost almost the same as standard electricity.

In association with Deutsche Shell, the electricity supplier HEW has been offering residents in the Hamburg area electricity from 100% renewable sources since 1 June 1999.

Faced with increased competition due to the liberalisation of German energy markets, the firm brought down its prices in general as of 1 October 1999. At the same time, HEW reduced its green premium from around DM21/month (£7) to DM4/month (£1.32) for the average household.

Spokesperson, Rainer Winzenried told edie there is no subsidy involved, just a reduction in the companies’ income. “But we think it is worth it, as we want to attract the customers’ attention to renewable energy…. customers are still reluctant to change suppliers, and they are not jumping to switch to renewable energy.”

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