(new: more details and background)

KARLSRUHE (dpa-AFX) - High electricity costs for consumers on the one hand, high profits for some electricity producers on the other - in the energy crisis triggered by the war in Ukraine, the federal government had some so-called surplus lots cut off from green electricity producers. According to a ruling by the Federal Constitutional Court, this was legal in this exceptional situation. The highest German court rejected constitutional complaints by 22 operators of wind power, photovoltaic and biomass plants against the regulation introduced as part of the electricity price brake.

Electricity is a special commodity

The aim of the electricity price brake, which has now expired, was to relieve consumers of the burden of high electricity prices in the face of the energy crisis. From December 2022 to June 2023, excess profits made by operators of green electricity plants were partially absorbed.

The judges in Karlsruhe ruled that this was also legal in a crisis of "quite extraordinary dimensions". Electricity is an indispensable commodity. By redistributing the excess profits generated, an appropriate balance had been struck between the extraordinarily favored electricity producers and the considerably burdened electricity consumers.

"Cost shock" for citizens

Consumers would have suffered a "cost shock" in view of a tenfold increase in the peak price in August 2022 compared to the average price in 2021. The situation was classified as an exceptional emergency situation due to the uncertainties about the possibility of maintaining an affordable energy supply for companies and private households, according to the court.

Green electricity producers benefited from high gas prices

At the time, green electricity providers, among others, were generating profits that were significantly higher than the companies' expected profits. The law refers to surplus producers. This was due to the extremely high gas prices as a result of the Russian war of aggression. Because gas-fired power plants are often the most expensive power plants on the electricity market and set the price for all other power plants, other types of generation also benefited from the high prices, while their costs remained roughly the same.

Interference with professional freedom

The green electricity producers affected did not want to accept the capping. In their view, it was unconstitutional. Overcoming the energy crisis was the responsibility of the state and therefore had to be financed from tax revenue. If the judges in Karlsruhe had followed this assessment and the law had had to be reversed, the excess profits of around 750 million euros that were siphoned off would have had to be paid back to the operators.

In the view of the constitutional court judges, the capping "interfered to a considerable extent with the professional freedom of the affected electricity producers". However, the interference was mitigated by the short time limit, for example. In addition, a substantial part of the extraordinary income accrued after the start of the war in Ukraine was not accessed. The interference with freedom of occupation was therefore justified and constitutional.

State did not obtain additional revenue

The measure was neither a tax nor a non-tax levy, explained the First Senate of the Federal Constitutional Court. This is because the levies did not generate any revenue for the federal government. Instead, the amounts were "passed on" to consumers via the network operators, for example. It was a case of "redistribution among private individuals".

Disappointed green electricity producers

There were disappointed faces among the complainants after the ruling. "We would have liked a different verdict," said Marc Wallraff from Lichtblick Solarpark Calbe GmbH & Co. He assured the plaintiffs that it was not about the money, but about clear regulations.

Following the ruling, the German Chamber of Industry and Commerce insisted that there should be no intervention in the electricity price. "A price signal without political intervention is key to ensuring that supply and demand are securely balanced on the electricity market," said Deputy Managing Director Achim Dercks. "Operators of power plants and renewable energies also need the certainty that politicians will not subsequently devalue investments by intervening."/jml/DP/jha