German network agency expects consumer gas prices to triple
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E-mail Xinhua, July 15, 2022
BERLIN, July 14 (Xinhua) -- The price of natural gas to consumers would at least triple in 2023 in Germany, Klaus Mueller, president of the Federal Network Agency (BNetzA), said on Thursday.
"Those who are now receiving their heating bills are already seeing their rates double," while the impact of the Russia-Ukraine conflict had not even been taken into account yet, Mueller told Redaktionsnetzwerk Deutschland (RND).
It is "absolutely realistic" that consumers with an annual gas bill of 1,500 euros (1,503 U.S. dollars) today would see this figure shoot up to 4,500 euros and even more in the future, Mueller said.
"On the exchanges, prices have increased sevenfold in some cases. Not all of this will reach consumers immediately or in full, but at some point it will have to be paid for," he stressed.
The German government has already adopted several measures to cushion the effects of rising energy prices. These include higher mileage allowances for long-distance commuters, a one-time heating allowance, discount tickets for public transport and a fuel tax cut.
Regardless, household energy bills in Germany increased markedly again in June, rising 40.7 percent year-on-year, according to the Federal Statistical Office (Destatis). Prices for heating oil more than doubled, and natural gas prices were up 60.7 percent.
The increase in energy product prices was "markedly higher than the overall inflation rate despite the relief measures because it is influenced by several factors," such as international purchase prices and the CO2 charge, Destatis noted.
At the same time, Germany is struggling with diminishing gas supplies. To prevent shortages, the government is encouraging citizens to reduce gas consumption and is aiming to fill storage facilities from the current level of around 65 percent to 90 percent before the winter.
A new decree that entered into force on Thursday allows for reserve power plants that run on oil and coal to return to the electricity market until the end of the winter of 2022-2023, according to the Ministry for Economic Affairs and Climate Action (BMWK). (1 euro = 1 U.S. dollar) Enditem
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