EWE passes on cuts to the customers
EWE NETZ will lower electricity network charges
Oldenburg, December 18, 2006. EWE NETZ GmbH in Oldenburg will lower its electricity network charges backdated to 1st December 2006. The federal network agency has set the charges levied for utilising the 1 and 20 kV power distribution network at 9.9 per cent lower than that applied for by EWE NETZ. The new network charges apply until 31st December 2007.
“EWE NETZ has always acted correctly and objectively in calculating its network charges. A national comparison shows that our network charges are among the most favourable to be had”, stated Heiko Harms, Chairman of the Management Board of Netze and IT, in response to the decision. “The cut is moderate compared to cuts made at other companies, but it comes as a blow nevertheless.”
The regulatory measures undertaken by the federal network agency would not only lead the company to suffer, but also the entire region. “Investment in the power net requires appropriate network charges. EWE NETZ is already very efficient and also operates one of the safest electricity networks in Europe. We cannot improve our efficiency indefinitely to absorb the reduced charges”, said Harms. EWE will have to reduce its investments in maintaining and extending the network.
The parent company EWE AG will pass on the lower charges to the customers. Whether and to what extent the prices for the tariff customers will alter is still unclear. The electricity price for the customers is composed of network charges, procurement costs and taxes and contributions. The reduction of network charges by 9.9 per cent will lead to a reduction of customer prices by around 4 per cent, due to the fact that network charges account for around 40 per cent of the gross price. Taxes and contributions make up around further 40 per cent of the price, electricity procurement accounts for 20 per cent. The increase in costs for obtaining renewable energies as well as the higher procurement costs had led EWE to apply to the Department of Environment in Lower Saxony – as the supervisory body responsible – for an increase in the electricity price back in July. The department is now reviewing the electricity increase in the general tariff applied for by EWE taking into account the approved network charges. The new year will also see the increase in value added tax further affecting the price.
Einzelheiten zu den Stromnetzentgelten finden Sie im Internet unter http://www.ewe-netz.de/ 
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