Energy

Ostrom Market Price Adjustment: January 2025

By

Team Ostrom

5.1.2025

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3

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At Ostrom, we have always believed in keeping our customers informed about important updates that impact their energy service.

At the start of 2025, changes to market grid fees and updates to government taxes and levies on electricity prices take effect. As these changes affect all electricity providers, we need to adjust our tariffs to reflect these changes.

Nevertheless, Ostrom has always been firmly committed to our mission to revolutionize the energy market. Our tariffs are fair and transparent, reflecting electricity at cost equally for all customers — new and existing. We offer a fully digital experience through our Ostrom App, along with best-in-class support. As a certified B Corp™ with TÜV Nord-verified 100% renewable electricity, we uphold the highest standards of sustainability and social responsibility.

As always: Electricity at cost price!

While traditional electricity suppliers typically add a margin to the unit price per killowatt-hour (kWh), generating record profits from incentivizing additional energy consumption, Ostrom continues to stick to our flat monthly basic fee of 6 €.

This means we do not profit from rising electricity prices and aim to empower our customers to use as little electricity as possible. We have always believed that the cheapest electricity is that which is not consumed in the first place!

Why is the electricity price changing?

While there are various market, legal, environmental and geopolitical factors that all impact energy prices, here are some that help explain the most recent movements.

⚖️ Market & Legal Changes

Each year, updates to electricity surcharges impact prices for the following year. As noted, these changes are market-wide and hence apply to all energy providers in Germany. Here’s what’s new for 2025:

  • CHP Surcharge: Now 0.277 ct / kWh, supporting combined heat and power generation with increased subsidies.
  • § 19 StromNEV Levy: Increased to 1.558 ct / kWh, ensuring competitive grid fee relief for energy-intensive industries.
  • Offshore Liability Levy: Raised to 0.816 ct / kWh to fund risks of offshore wind farm grid connections.
  • Electricity Tax: Remains stable at 2.05 ct / kWh, funding pensions with relief options for energy-intensive users.
  • New Grid Fee Regulations: Starting in 2025, Germany will implement a new model for electricity grid fees, redistributing costs more evenly across regions to alleviate higher charges in areas with significant renewable energy production. This means that your grid fees may increase or even decrease, but varies by your postal code — with a tendency to go lower in the north and higher in the south of the country.

Item 2024 (ct / kWh) 2025 (ct / kWh)
CHP Surcharge 0.257 0.277
§ 19 StromNEV Levy 0.643 1.558
Offshore Liability Levy, § 17 f EnWG 0.656 0.816
Electricity Tax 2.05 2.05
Grid Fees Fixed Varies by Region

⛓️‍💥 Constrained Energy Supplies

  • Continued Russia-Ukraine war constraining overall energy deliveries to Europe, attacks on energy infrastructure.
  • Pullout of Russian gas deliveries to various European states such as OMV Austria in November 2024.
  • No Russian gas delivered to Europe via Ukrainian pipelines since Jan 1, 2025.
  • Tensions in various regions in the Middle East causing fears of supply constraints.
  • The merit order effect. Ostrom only purchases electricity from renewable energies yet increased oil and gas prices still impact the overall electricity price (learn more here and here).

❄️ Seasonal & Environmental Effects

  • There is increased energy demand during winter for heating, which paid with supply, causes a seasonal increase in prices.

How Ostrom commits to fair prices & sustainable energy

  1. We provide electricity at cost price - without a surcharge on top of the unit price per kWh
  2. We cushion short-term price peaks — We only increase prices if electricity prices rise in the long term
  3. We subsidize renewable energies to reduce dependence on fossil fuels

Why Price Guarantees only guarantee high prices

We at Ostrom believe in steering clear of tariffs with a fixed price guarantee. If you've been following us for a while or are an Ostrom customer, you'll know that we also pass on all price reductions.

You can only benefit from falling electricity prices if you have a flexible tariff. At Ostrom, we pass on the electricity price at the cost price so that you immediately pay less as soon as the electricity price falls.

We have also already written before why price guarantees tend to cost more even in the short and medium term, as price reductions are not passed on. Many other consumers are still paying 2022 peak prices in 2024.

Everything Ostrom

Our team at Ostrom appreciates the continued support for our shared green energy mission! Here are just a few of the many smart integrations and products we also offer:

  • SimplyDynamic Tariff: Like our SimplyFair tariff but even better! Benefit from hourly dynamic prices and save up to 35% on your energy bill.
  • Smart Meter: No smart meter yet for our SimplyDynamic tariff? No problem! Order one through Ostrom, we’ll help you get one.
  • Ostrom Price Cap: Your additional protection against possible electricity price increases by capping the energy price.
  • Smart Home Integrations: Whether it’s for your electric vehicle (EV), smart thermostat or heat pump, solar panels, or battery storage, let Ostrom optimize them to run during the cheapest and greenest hours
  • Ostrom Store: Find smart home devices in our Ostrom Store and get discounts by using your referral code.

Any questions? Visit our FAQs for more information. Alternatively, the best and quickest way to reach us is via live chat or use our contact form.