Would you like a simple example?

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This is based on the most expensive power plant, which determines the marginal costs, i.e. the additional costs due to increased production. As a result, the enormous gas price increases are directly reflected in higher electricity prices. Meanwhile, wind and solar plants that generate cheaper electricity can expect additional profits.

Let's assume that customers report a demand of 80 gigawatts (GW), which cannot be met by renewable energies, hydropower, nuclear energy and lignite in ascending order. In this case, coal-fired power - with a marginal cost of 250 euros per MWh - is needed to meet the demand. The electricity that is auctioned the next day then costs 250 euros guatemala consumer email list​ per MWh. If demand continues to rise to 100 GW, so that gas-fired power plants, whose marginal cost is 500 euros per MWh, have to be switched on, then the electricity will cost 500 euros per MWh the following day - regardless of the source. Because electricity is priced uniformly and currently primarily gas-fired power plants - the most expensive energy producers - are connected to the grid, the crisis of expensive gas is spilling over into the electricity market.

Doesn't that sound unfair for the end consumer? What are politicians planning?
The fact that producers are making millions in profits thanks to the merit order model is good news for the economy, but not for end consumers, who are being passed on the rising electricity prices. The German government is currently not intervening in this pricing mechanism, which is why operators of renewable energies, nuclear power plants and coal-fired power plants are enjoying gigantic profits. On August 26, 2022, however, Federal Minister of Economics Robert Habeck announced that he would reform the electricity market. The aim is to decouple the development of end customer prices for electricity from the rising price of gas.