How much price increases are affecting gas customers

Status: 11/12/2021 3:33 p.m.

Gas customers of the third largest German utility EnBW and many other providers will soon have to pay significantly more. What does this mean for an average household? And when will the market relax?

The wave of price increases for electricity and gas is picking up speed. After numerous smaller providers, EnBW Energie Baden-W├╝rttemberg AG, the third largest supplier in Germany, announced price increases today. “Since the beginning of the year, gas prices on the stock exchange have quadrupled and electricity prices tripled,” said CFO Thomas Kusterer at a conference call. Although the group has a long-term procurement strategy, the development is not leaving EnBW without a trace. “I assume that we will see an increase in the gas sector.” How high this will be is open.

According to the comparison portal Check24, more than 250 Gas and electricity utilities raised their prices or announced increases, including 185 gas providers. On average, the price increases amounted to 20.9 percent. According to Check24, they affect around 1.4 million households. For a model household with a consumption of 20,000 kWh, this means additional costs of an average of 319 euros per year.

A look at the wholesale price also shows how much gas has recently become more expensive. Most recently, 94.05 euros per MWh were due. In November 2020, the megawatt hour cost only 14.18 euros – an increase of 563 percent.

Several reasons for the high prices

The reasons for the soaring are manifold. Jelena Burmistrowa, the head of Gazprom-Export, recently explained the sharp rise in gas prices with the strong recovery of the global economy after the corona restrictions. There is especially in Asia an unexpected “hunger for energyBurmistrowa said that the US would have preferred to deliver additional liquefied natural gas to China rather than Europe. She firmly rejected allegations that Russia had driven up prices by withholding gas , be far from reality.

Russian President Vladimir Putin had accused the EU of neglecting to refill the gas storage facilities in the spring. This year, a lull in the wind in the North Sea made matters worse, so that the wind turbines there produced less electricity. As a result, more gas than usual had to be used for power supply. This also reduced storage reserves.

Russia promises deliveries

The Kremlin has confirmed that it will keep energy supplies to Western Europe as agreed – regardless of threats by Belarusian ruler Alexander Lukashenko to stop gas transit to the EU. “Russia was, is and will always be a country that fulfills its obligations to supply European consumers with gas,” said Kremlin spokesman Dmitry Peskov today, according to the agency Interfax. The “reliable deliveries” were made independently of Minsk’s actions.

In view of possible new EU sanctions against Belarus, Lukashenko threatened to let one more guest through the Yamal-Europe leadership. The Foreign Ministry in Minsk once again warned the EU against further punitive measures and threatened a “tough reaction”.

More gas through Ukraine

Like the news agency dpa with reference to the Russian state agency Ria Novosti reports, Gazprom cut deliveries via Belarus by 40 percent on Friday. Instead, according to information from Kiev, transit via Ukraine was increased. “After a decrease to almost 57 million cubic meters in the first days of November, the daily transit volume has returned to the contract volume of 109 million cubic meters,” said the head of the Ukrainian gas transport system operator, Serhiy Makohon, on Facebook. This means that the Yamal pipeline, which runs through Belarus, is becoming less important.

Gazprom actually wanted to do without Ukraine as the most important transit country for Russian gas deliveries to Europe. Because the way through Ukraine is longer and therefore more expensive, according to the group; In addition, the Ukrainian transmission network is ailing. Russia is urging rapid commissioning of the controversial Baltic Sea pipeline Nord Stream 2.

Reference-www.tagesschau.de

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