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Early Deadline for Electricity Labeling: A Revamped Policy

2024-07-18

The German energy sector is set to undergo a significant change as the deadline for electricity labeling moves to July 1, starting next year. This adjustment, part of the 'Solar Package I', aims to harmonize with European standards and streamline processes for energy suppliers. The shift is expected to alleviate the traditionally hectic October period for German energy suppliers by spreading out the workload over the summer months.

The New July 1 Deadline for Electricity Labeling

The municipal utility network, "Working Group for Efficient Energy and Water Use" (ASEW), has highlighted this change, emphasizing the importance of early awareness. Previously, German energy suppliers faced a cumbersome October, balancing multiple electricity price add-ons and publishing electricity labeling before November 1. With the new July 1 deadline, these tasks are expected to be more manageable.

ASEW's Perspective on the Deadline Change

Kara Hoffmann, ASEW's Group Leader for Ecoenergies, remarked on Germany's alignment with the European standard. She noted that Germany had lagged behind Europe in this regard, and the federal government's decision to move the deadline to July 1 is a welcome change. However, Hoffmann pointed out that better communication around the decision would have been beneficial, as linking the adjustment of paragraph 42 EnWG to 'Solar Package I' inadvertently diminished its perceived importance.

Implications for Processing Times

The new deadline also affects the timeframes for communication between front-end suppliers. Previously valid regional evidence periods will now shift, requiring adaptation by local utilities. Christian Esseling, ASEW's Vice Head of Sales Solutions, highlighted the need for energy suppliers to adjust their processes accordingly. He anticipates that the deadline shift will initially shorten processing times and redistribute the workload into the second quarter.

Rescheduling ASEW's Annual Web Seminar

In response to the deadline change, ASEW has rescheduled its annual web seminar on electricity labeling to the second quarter of 2025. This adjustment ensures that the seminar aligns with the new timeline, helping energy suppliers adapt to the revised processes. This year's web seminar will proceed as planned at the end of September.

The Importance of Electricity Labeling

Electricity labeling plays a crucial role in the energy sector. ASEW's market research among its members revealed that over ten percent of the 293 surveyed companies advertise 100 percent green electricity. These companies use provenance evidence for their entire sales, including households, major clients, and basic supplies. More than half of the utility companies surveyed surpass the German average in terms of emissions, highlighting the sector's commitment to green energy.

Growing Significance of Origin Certificates

Kara Hoffmann underscored the increasing importance of origin certificates for companies reporting under the Corporate Sustainability Reporting Directive (CSRD). Future reports will require a greenhouse gas balance, and using origin certificates allows companies to reduce Scope 2 emissions to zero. ASEW recognizes the importance of proven product characteristics, and origin certificates, anchored in European law, provide a verifiable 'green' characteristic.

Conclusion

The early deadline for electricity labeling marks a significant policy shift for Germany's energy sector. By aligning with European standards, the new July 1 deadline aims to streamline processes and reduce the traditional October workload. As energy suppliers adapt to this change, ASEW continues to support the industry through timely seminars and market research, emphasizing the importance of green energy and origin certificates.

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