A short introduction to German retail energy markets

By Jörg Wiener

This book has as its intended readership those keen to gain a basic understanding of German retail energy markets. I could have gone into much greater depth and more detail, but this would not have made for an interesting read. I therefore decided to write an account that would give a short and broad overview of the markets.

• Language: English
• Publisher: Books on Demand
• Release date: Mar 26, 2019
• ISBN: 9783748141846

Jörg Wiener

Having taken a degree in Business Economics and Finance at the University London I began my career in the energy industry at Enron Europe and after its demise continued working for several other energy companies in several European countries (UK, Austria, Switzerland, Germany), gaining valuable experience from back-office operations to trading power and gas. Today I look back on more than 15 years in the industry and work as a freelance consultant.

Book preview

A short introduction to German retail energy markets

Preface

Table of Contents

Part I

Why a business in Germany – how could it work?

Why not simply copy a foreign business model?

All Germans speak English

Steps to start your own energy business in Germany

German Energy Contracts

Part II

The energy markets then vs. the energy markets today – what has changed?

European Emission Trading

Part III

The German network

Classification of customers

Who supplies end users when their electricity retailer goes bankrupt?

The German power market today

German power pricing policy and what determines its constituent elements

These elements make up the price of Power for an end user

Grid Operator Fees

Offshore Levy

EEG Charge

KWKG Charge

Sheddable Load Charge

§19 Charge

Concession Levy

The Power Process

The Balancing Account

Excess- Shortage Volumes

Imbalance Charges/Control Energy

Imbalance Charge Calculation Power

Power Process Overview

How are Data exchanged?

TSO Collateral

The Allocation List

Domestic German Process phase of Schedule management

Acknowledgement message and Acceptance inspection

Start of Delivery Process

End of Delivery Process

Cancellation of end-user agreement

Measurement of flow / Meter reading

Invoice for grid usage charges/network charges

Changing of key data

Part IV

Regulatory Zones

How is the German price of gas made up / calculated?

Gas Network Charges

The SLP/RLM Accounting Levy / (Bilanzierungsumlage)

The Conversion Charge

The Concession Charge

Gas Process Overview

Gas Balancing Circle

Declaration

Nomination

Allocation

The Clearing Process

Transport Capacity

Imbalance Charge Calculation Gas

German Gas Acquisition

Average Gas Use

Copyright

Preface

This book has as its intended readership those keen to gain a basic understanding of German retail energy markets. I could have gone into much greater depth and more detail, but this would not have made for an interesting read. I therefore decided to write an account that would give a short and broad overview of the markets.

Table of Contents

Part I

Introduction - Setting up a business in Germany

Why a business in Germany – how could it work?

Why not simply copy a foreign business model?

All Germans speak English

Steps to start your own energy business in Germany

German Energy Contracts

Part II

The energy markets then vs. the energy markets today – what has changed?

The European Emission Trading Scheme

Part III

Classification of customers                                                                                         

Who supplies end users when their ectricity retailer