Ostrom Is Keeping Tariffs Consistent Amidst Rising Energy Costs

Recent reports from reputable sources such as Verivox, Agrarheute and InFranken have highlighted a worrying trend: a significant number of energy providers across Germany are set to increase their prices in March and April. This news comes as a blow to many, especially in the current economic climate where every penny counts. But amidst this unsettling forecast, Ostrom stands out as a beacon of stability and transparency.

Why Ostrom Remains Steady When Other Providers Won’t

Our unique approach charges energy at the current market price, which means our pricing is inherently transparent and reflects actual market conditions without unnecessary markups. This model serves as the foundation of our promise: to provide green electricity at fair prices, unaffected by arbitrary hikes.

‍

Ostrom understands the importance of predictability in household budgeting, especially in times of financial uncertainty. That's why we offer our customers the option to opt into the Ostrom Price Cap. The Ostrom Price Cap offers extra protection in case energy costs rise, ensuring your bills remain manageable. Conversely, should the market price fall, you're not locked into higher rates, allowing you to benefit from lower energy costs. This dual advantage underscores our dedication to fairness, making Ostrom not just a provider, but a partner in navigating the complexities of the energy market.

A Closer Look at the Rising Trend

The landscape of energy pricing is undergoing a significant shift as a considerable number of energy providers are set to increase their rates. This isn't a random occurrence but the result of a combination of critical factors, including escalated procurement costs, changes in regulatory frameworks, and substantial investments in infrastructure, paving the way for a marked impact on the consumer market.

‍

A more detailed examination, as reported by Verivox, highlights that in March and April, approximately 2.6 million households in Germany will face higher electricity prices, with an average increase of around 128 euros. Meanwhile, electricity prices for new customers continue to decrease, now reaching levels seen in spring 2021.

Households in Basic Supply Pay More

For March and April 2024, regional basic suppliers have announced a total of 224 price increases, averaging an 8 percent hike. A three-person household with an annual consumption of 4,000 kilowatt-hours (kWh) will thus face an average increase of 128 euros in their bills. More than 11 million households reside in the areas affected by these price increases. According to the Federal Network Agency, 24 percent of electricity customers are on the local basic supply tariff, equating to roughly 2.6 million affected households.

‍

At the same time, there are also 53 electricity price reductions averaging 8 percent, equating to an average relief of approximately 143 euros for the same consumption, impacting around 350,000 customers and clients.

Significant Price Differences Between Tariff Groups

From April onwards, a kilowatt-hour of electricity in the local basic supply tariff will cost an average of 44.3 cents nationwide. Consequently, a three-person household with an annual consumption of 4,000 kWh will incur electricity costs of 1,772 euros.

‍

The price level for new customer electricity prices is significantly lower, tending to decrease further in light of low wholesale electricity prices. Currently, the cheapest offer with a price guarantee averages 25.58 cents/kWh at a consumption of 4,000 kWh, resulting in annual costs of 1,023 euros. Therefore, the average price difference between the basic supply tariffs and the cheapest offers with a price guarantee is currently 749 euros per year.

‍

"A number of electricity providers are passing on the 25 percent increase in electricity network charges at the turn of the year to their customers this spring. Providers also cite slightly increased state levies and high procurement prices from 2022. However, there are also electricity providers that, thanks to the significantly decreased wholesale prices, do not raise their prices. Therefore, we advise all those affected by price increases or still in expensive tariffs from the 2022 energy price crisis to compare available offers and, if necessary, switch," says Thorsten Storck, energy expert at Verivox.

Method

‍Verivox evaluated the available mandatory publication electricity prices for existing customers of around 800 local basic electricity suppliers in Germany for the price changes. Electricity prices for new customers with a price guarantee were collected based on the electricity providers listed on Verivox.

Looking Forward: The Ostrom Advantage

Not an Ostrom customer yet? Now might be the perfect time to consider making the switch. With the landscape of energy providers becoming increasingly unpredictable, finding a company that prioritizes wholesale market prices, transparency, and sustainability is more important than ever. By choosing Ostrom, you're not just securing a fair energy price for the next few months; you're also supporting a model that looks towards the future of energy consumption with optimism and responsibility.

While the energy sector might be bracing for a period of uncertainty with rising prices, Ostrom customers can rest assured that their tariffs will remain unaffected in March and April. As we move forward, our promise remains unchanged: to provide our customers with green electricity at fair and transparent market prices, regardless of the market trends.

List of Energy Providers that have Announced Price Increases in March and April‍

Baden-Württemberg

• EnBW Energie Baden-Württemberg (from April)
• Energieversorgung Filstal (from March)
• Gemeindewerke Baiersbronn (from March)
• Stadtwerke Bad Saulgau (from April)
• Stadtwerke Bad Wildbad (from March)
• Stadtwerke Emmendingen (from March)
• Stadtwerke Freudenstadt (from March)
• Stadtwerke Gaggenau (from March)
• Stadtwerke Mühlacker (from March)
• Stadtwerke Rottenburg am Neckar (from March)
• Stadtwerke Stockach (from March)
• Stadtwerke Waldkirch (from March)
• Stadtwerke Wertheim (from March)
• SWP Stadtwerke Pforzheim (from March)
• SWU Energie (from March)

Bayern

• Stadtwerke Bad Brückenau (from March)
• ÜZ Mainfranken (from March)
• EMB – Energieversorgung Miltenberg-Bürgstadt (from March)
• Stadtwerke Schweinfurt (from March)
• Vereinigte Wertach-Elektrizitätswerke (from March)
• Stadtwerke Rosenheim Versorgungs (from March)
• Stadtwerke Zirndorf (from March)
• Elektrizitätswerk Tegernsee (from March)
• Gemeindewerke Kahl (from March)
• Stadtwerke Plattling (from March)
• Stadtwerke Pfarrkirchen (from March)
• Stadtwerke Kelheim (from March)
• Stadtwerke Trostberg (from April)

Brandenburg

• Havelstrom Zehdenick (from April)

Bremen and Hamburg

• EWE Vertrieb (from April)

Hessen

• Energieversorgung Rüsselsheim (from March)
• enwag energie- und wassergesellschaft (from March)
• ESWE Versorgungs (from March)
• Stadtwerke Langen (from March)
• Werra-Strom (from March)

Mecklenburg-Vorpommern

• Stadtwerke Lübz (from April)
• Stadtwerke Neustrelitz (from April)

Niedersachsen

• EVI Energieversorgung Hildesheim (from March)
• EWE VERTRIEB (from March)
• Stadtwerke Böhmetal (from March)
• Stadtwerke Buchholz in der Nordheide (from March)
• Stadtwerke Burgdorf (from March)
• Stadtwerke EVB Huntetal (from March)
• Stadtwerke Lingen (from March)
• Stadtwerke Peine (from March)
• Stadtwerke Rinteln (from March)
• Stadtwerke Schaumburg-Lippe (from March)
• Stadtwerke Soltau (from March)
• Versorgungsbetriebe Hann. Münden (from April)
• Werra-Strom (from March)
• Wirtschaftsbetriebe der Stadt NSHB Borkum (from March)

Nordrhein-Westfalen

• Biggie Energie (from March)
• Bocholter Energie- und Wasserversorgung (from March)
• Energieversorgung Leverkusen (from March)
• EWR (from March)
• HochsauerlandEnergie (from March)
• RheinEnergie (from April)
• Stadtwerke Bad Salzuflen (from March)
• Stadtwerke Bielefeld (from April)
• Stadtwerke Erkrath (from March)
• Stadtwerke Greven (from April)
• Stadtwerke Gronau (from March)
• Stadtwerke Gütersloh (from April)
• Stadtwerke Kleve (from March)
• Stadtwerke Lippstadt (from March)
• Stadtwerke Nettetal (from March)
• Stadtwerke Solingen (from March)
• Stadtwerke Unna (from March)
• Stadtwerke Versmold (from March)
• WSW (from March)

Rheinland-Pfalz

• Gemeindewerke Budenheim (from March)
• Rheinhessische Energie- und Wasserversorgung (from March)
• Stadtwerke Grünstadt (from March)

Saarland

• Stadtwerke Dillingen/Saar (from March)

Sachsen

• Freitaler Strom und Gas (from March)
• Stadtwerke Oelsnitz Vogtl (from March)

Sachsen-Anhalt

• Halberstadtwerke (from March)
• Städtische Werke Magdeburg (from April)
• Stadtwerke Bernburg (from March)
• Stadtwerke Blankenburg (from March)

Schleswig-Holstein

• e-werk Sachsenwald (from March)
• Versorgungsbetriebe Bordesholm (from March)

Thüringen

• Energieversorgung Inselsberg (from March)
• Stadtwerke Meiningen (from March)
• Stadtwerke Mühlhausen (from March)