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TRANSPOSE Working Paper No11: Stromeffizienztarife für Verbraucher in Deutschland? Vom Sinn, der Machbarkeit und den Alternativen einer progressiven Tarifsteuerung

Kerstin Tews - 2011, 64 pages (Abstract: DE EN) (Download Paper)

Abstract
This study focuses on electricity tariffs, in particular on tariff types that act as incentives
for energy efficiency on the demand side, i.e. the so called inclining block tariffs or
progressive tariffs. The German Energiewirtschaftsgesetz (“Energy Industry Act”) sets the
goal to realize electricity efficiency potentials on the supply and demand side by dynamic
pricing. Against this background the study investigates the political and legal feasibility of
adopting this kind of dynamic pricing in Germany.
The study analyzes on the one hand both effectiveness and factors determining the
effectiveness of inclining block tariffs, in order to examine whether such a tariff model can
be a useful policy instrument to reduce power consumption in households. On the other
hand, lessons from countries, which have already adopted this instrument, are drawn to
elicit the political, legal and technical feasibility of this instrument in Germany. In order to
draw relevant lessons for policy, the search for international promising approaches and
good practices focuses in particular on those features of a tariff design which are
compatible with the conditions of a liberalized electricity market.
With respect to the feasibility of progressive tariffs in Germany, the analysis comes to the
conclusion that the introduction of such a tariff structure would require a strong
intervention, especially on the legal framework. The necessary adjustments would imply
corrections or even an alteration of the current demand-orientated and market approach
in the design of policy measures addressing electricity efficiency targets. The concluding
chapter summarizes the essential problem areas for the introduction of inclining block
tariffs in Germany. It provides an outlook of alternative policy options and puts forward
ideas in which broader policy and instrument framework this art of tariffs could be better
embedded.