Gas prices have been rising steeply for months. That is why calls for a response from the EU are getting louder. Germany’s largest gas importer Uniper sees little chance of a quick turnaround.
The price explosion on the energy markets in Europe calls politics into action. France announced a cap on gas and electricity tariffs over the winter months.
The heads of state and government of the EU member states want to discuss the topic at a summit on October 21st and 22nd. Council President Charles Michel put the item on the agenda in view of the dramatic price increase, a spokesman for the European Council announced on Thursday evening. Member States such as Spain are calling for joint action at EU level to curb the increase.
The price of natural gas had risen dramatically in the past few months. The gas prices have reached “historic highs”, said the head of Germany’s largest gas importer Uniper, Klaus-Dieter Maubach, in front of journalists in Düsseldorf. In wholesale, one megawatt hour of gas for delivery in the first quarter of next year now costs over 90 euros, a year ago the price was less than 10 euros. The development of electricity is similar.
It is to be expected that the energy prices will remain at the high level for longer due to the great demand on the world markets. “The gas prices that we currently have are a result of a certain concern that it could become scarce in winter,” said Maubach, referring to the below-average gas storage facilities in Germany and Europe.
Uniper: Gazprom is keeping all contracts
The Uniper boss defended the Russian energy company Gazprom against allegations that he caused the price increase with a shortage of supplies. “As in the last 50 years, the Russians deliver reliably.” All contracts would be kept. However, Gazprom is unlikely to exceed the agreed quantities. Uniper is Gazprom’s largest customer and co-financier of the Nord Stream 2 gas pipeline. Maubach does not expect the pending permits for the Baltic Sea pipeline to come so quickly that it could help ease the situation this winter.
According to figures from the Federal Statistical Office, private households in Germany got off relatively lightly in terms of energy costs in the first half of 2021. For electricity and gas, they each had to pay 4.7 percent more than in the second half of last year. The average price for electricity rose by 1.46 cents to 32.62 cents per kilowatt hour, gas rose by 0.29 cents to 6.41 cents per kilowatt hour, the Wiesbaden authority announced on Friday.
Role of VAT
According to statisticians, the main reason for the increase is the increase in VAT to the original rate of 19 percent at the beginning of the year. In order to stimulate consumption in the Corona crisis, the federal government had temporarily reduced VAT to 16 percent from July 1, 2020 to December 31, 2020. In the case of natural gas, the CO2 price introduced at the beginning of the year also drove up costs. The calculated average prices also increased compared to the first half of 2020.
In the meantime, according to market observers, the upward trend in prices has accelerated in Germany. By the beginning of the heating season, 58 basic gas suppliers had already increased their prices or announced price increases, reported the comparison portal Check24. On average, the price increases amounted to 11.5 percent and would affect a good 330,000 households. For a model household with a consumption of 20,000 kilowatt hours, this means additional costs of an average of 172 euros per year. A wave of gas price increases can be expected this winter.
In France, the gas price should not exceed the tariffs applicable after an increase from the beginning of October until April. Prime Minister Jean Castex announced on Thursday evening that the price of electricity will not increase until the end of the year, and from the beginning of 2022 by a maximum of four percent.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
