German Electricity Customers Paid Billions of Euros Too Much in EEG Surcharge

HAMBURG, Germany, April 10, 2015 /PRNewswire/ --

One of the tasks of an energy provider, such as Care-Energy, is to check the legality and correctness of energy bills for and in the interests of customers. In so doing, 3 factors apply, energy bills are checked with regard to quality, quantity and the right to make a claim. The Energy Controlling Department is responsible for these procedures.

Various energy providers' initial annual statements for 2014 have now been issued and were subjected to a stringent stress test with due consideration for these factors.

The result: Grade 5(!)  

In addition to criticisms relating to quantity, the most serious criticism during examination was levelled at the right to make a claim because it was revealed that 100% of the providers examined had failed to apply the amendment to the EEG [German Renewable Energies Act] - i.e. EEG 2014 - to their bills and had overcharged German electricity customers by billions of euros.

"We will obviously assist our customers in this matter and will formulate a claim for them to obtain a refund from their electricity providers as well as formulating a claim for electricity providers to obtain a refund from their transmission network operators. Errors to the detriment of consumers must be corrected and customers must not be overcharged, this is the reason for our energy services contract - customers must always be sure that they have a competent partner to assist them - we will reclaim the overpaid charges on behalf of our customers - from whichever provider is concerned(!)," says Martin Richard Kristek, CEO of Care-Energy.

What does the Act state in this respect?{sp}

The German EEG (Renewable Energies Act) regulates the general conditions for renewable energy as well as payments and surcharges to plant operators, which must be paid by providers and which they, in turn, charge to their customers as a surcharge - we think this is clear to everyone and we think that it is also clear to everyone that this Act is valuable and useful!

The fact is, however, that this Act has a scope of application, just like any other Act. The difference here, however, is that the scope of application is Germany, unlike in other acts, i.e:

Act for the Development of Renewable Energies (Renewable Energies Act - EEG 2014)

§ 4 Scope

This Act applies to plants if and insofar as electricity is generated in the Federal Republic of Germany including the German Exclusive Economic Zone.

http://www.gesetze-im-internet.de/eeg_2014/__4.html

This means that the Act itself and consequently ALL provisions therein and all regulations resulting from it and referring to it apply only to electricity from plants in Germany, i.e. electricity from German generating facilities. AND THAT'S A FACT!!

Foreign electricity - whether grey, green or whatever colour, does not fall within the scope of this Act and foreign plant operators do not receive a payment even though they supply Germany. In other words, there is no EEG surcharge for this electricity because the Act, and consequently the regulation on the surcharge, does not apply, as the scope does not allow any room for interpretation in this respect.

Consequently, providers who obtained electricity from abroad - and we checked a large number of them - are not allowed to charge their customers an EEG surcharge, as this is not permitted to be prescribed by the transmission network operators.

Why is this the case? There is simply no legal basis for charging the EEG surcharge, which is regulated in the EEG, but is only valid for and applicable to electricity from plants in the Federal Republic of Germany including the German Exclusive Economic Zone.

Conclusion: As the EEG cannot be applied to imported electricity, customers can reclaim the full EEG surcharge from their providers and the providers can reclaim it from their transmission network operators. Consequently, European providers can sell their electricity in Germany without an EEG surcharge.

Press contact:
Care-Energy Holding GmbH
Dessauer Strasse 2-4
20457 Hamburg

T: +49-151-42260332
marc.maerz@care-energy.de
http://www.care-energy.de