Customers urgently needed: electricity 2024 more often junk goods

Electricity was sold off more frequently on the exchange during periods of oversupply on the German market last year. In 2024, there were 459 hours with a negative price on the day-ahead market. This is where wholesale electricity is traded for the next day. In the previous year, there were 301 hours, in 2022 only 69, as the European electricity exchange Epex Spot - a subsidiary of the EEX in Leipzig - reported in response to a dpa inquiry. However, there were also significant price spikes. "The volatility on the electricity market has increased," explained Epex spokeswoman Maria Schubotz.

Negative electricity prices occur when high supply meets low demand - for example during strong winds on public holidays. Buyers on the exchange then sometimes receive money if they purchase electricity at short notice. In 2024, the highest negative value was EUR -135.45 per megawatt hour. Over the year as a whole, periods with a negative electricity price accounted for around five percent.

Short-term price fluctuations on the rise

There were significantly greater swings in the other direction on the exchange. The stock exchange price exceeded the 150 euro mark 379 times and even exceeded 500 euros 21 times. This corresponds to a share of 4 and 0.2 percent respectively, it said.

"Short-term price fluctuations are increasing as the energy supply is restructured," explained Schubotz. Overall, the electricity price on the day-ahead market for Germany 2024 has recently fallen. The average was €79.57. Although the exchange price was more than twice as high as in 2019 and 2020, it was below the prices for 2021 to 2023. In 2022, the price even skyrocketed to an average of €235.45 as a result of the energy price crisis caused by the Russian war of aggression against Ukraine.

Dynamic tariffs linked to exchange electricity prices

Electricity prices on the exchange are wholesale prices. Consumers have generally agreed fixed prices for the entire year with their energy supplier, who procure their electricity primarily through long-term contracts. The end customer price also includes other taxes and levies. However, since the beginning of the year, electricity suppliers have also had to offer dynamic electricity tariffs that are linked to the short-term electricity exchange price. This requires smart electricity meters that transmit current consumption data.

According to experts, this offers both opportunities and risks. Consumers can save money if they charge their electric car or do their laundry when electricity is cheap. However, they also bear the risk of so-called dark doldrums, when wind and solar power plants barely deliver and the price on the exchange skyrockets.

At EnviaM, for example, the largest energy supplier in eastern Germany, the dynamic tariff has been in place for around a year. The number of customers is "in the mid three-digit range", said spokeswoman Cornelia Sommerfeld - with around one million electricity customers in total. Under this tariff, the average consumption price in 2024 was around 26 cents per kilowatt hour.

Variable electricity prices offer incentives for investments

Customers who can react to fluctuating electricity prices in particular have the potential to make savings, Sommerfeld explained. For example, by shifting energy-intensive work to times when electricity prices are low and switching off unneeded appliances when prices are high. "The product is particularly suitable for customers with high consumption who can control their electricity consumption flexibly, for example with smart home technologies."

"The electricity system is undergoing a transformation," explained Schubotz. This is reflected in the fluctuations on the exchange, which is like a kind of thermometer for supply and demand. An important key to greater price stability is greater flexibility on the part of electricity consumers. There is still a lot of potential here that can be exploited. According to Schubotz, dynamic electricity tariffs create incentives for this. At the same time, price fluctuations are also an incentive to invest in electricity storage, for example.