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The consumption charge indicates how much a company pays per kWh of electricity consumed — a key variable for variable energy costs and tariff comparisons.
The consumption charge is the part of the electricity tariff that charges for the actual energy consumption in kilowatt-hours (kWh). It indicates how much a company pays per kWh of electricity consumed — regardless of the maximum power or other fixed cost components.
The consumption charge is calculated per kilowatt-hour and usually represents the largest variable component of electricity costs. It includes not only the actual energy costs, but also:
• Grid charges (consumption-based component)
• Statutory levies (e.g. §19 levy, offshore levy)
• Taxes
• Electricity supplier margins, if applicable
In some tariffs, the consumption charge is fixed over the contract period; in others it is dynamic — for example linked to exchange electricity prices.
The consumption charge is the central calculation variable for the variable part of electricity costs. Companies that actively manage their electricity consumption — for example through self-consumption or energy storage — can directly influence the level of the consumption charge and significantly reduce their energy costs. When selecting tariffs and evaluating projects such as renewable energy installations, the consumption charge is a key parameter.
