Vattenfall Germany CEO Warns Against Unrealistic Promises on Lowering Electricity Prices
Vattenfall, a major European energy company, has warned the new German government against making unrealistic promises to reduce electricity prices. In an interview with the Redaktionsnetzwerk Deutschland, Robert Zurawski, the CEO of Vattenfall Germany, stated that it is not that simple to achieve a reduction of 5 cents per kilowatt-hour in electricity prices as promised by Union and SPD in their coalition agreement.
Zurawski explained that today, the majority of the electricity price is made up of electricity taxes, network fees and various levies and surcharges. He emphasized that if there is a reduction in electricity taxes and a cap on network fees, it will have a dampening effect on prices. However, he pointed out that a direct transfer of certain price components is currently not allowed by regulatory authorities.
To address this issue, Zurawski called for a legislative reform, urging the government to provide the possibility for suppliers to directly pass on the relief measures, so that customers can benefit from them more quickly. He emphasized the need for a transparent and fair approach to ensure that electricity prices remain competitive and sustainable in the long run. The energy sector is facing significant challenges, including the need to transition to renewable sources and reduce carbon emissions, which adds to the complexity of managing electricity prices effectively. The new government must strike a balance between meeting consumer expectations and ensuring the stability and profitability of the energy industry. The industry stakeholders, including Vattenfall, will be closely monitoring the developments and advocating for a comprehensive strategy to tackle the challenges ahead.