The winter could become even more expensive for gas customers: following an already significant rise in prices, consumers should brace themselves for further increases, according to the comparison portal Verivox. “We expect further widespread price hikes, including for existing customers,” Verivox CEO Daniel Puschmann told newspapers belonging to the Funke Media Group (in their Friday editions). Gas currently costs nearly 20 percent more than it did a year ago—approximately 13 cents per kilowatt-hour.
Image: Shutterstock
Consumers should therefore review their existing contracts and compare offers if a price increase occurs, Puschmann explained. Those who still have a price guarantee, however, do not necessarily need to take any action.
Prices in the wholesale markets have also risen significantly of late. They are now around 200 percent higher than they were a year ago, Puschmann stated. In February, a megawatt-hour cost 32 euros; it has since reached 96 euros. “This will, with some time lag, also be reflected in household contracts.” It is difficult to predict, however, just how much further gas prices might rise. Energy suppliers make their purchases in different ways and pursue different strategies.
The CEO of Verivox emphasized that there is no immediate risk of a gas supply shortage, despite storage levels being relatively low. “The situation is different from 2022,” Puschmann said. Due to supply disruptions—particularly in the Middle East—Europe is competing with other buyers, such as Japan, for scarcer resources. “In my view, this is primarily a question of price, not a question of whether gas will be available at all.” Consequently, the crucial factor will be how expensive heating becomes.
When entering into a new contract, consumers should consider not only the price but also the contract term. For newer agreements, once the minimum term has expired, there is generally an option to cancel on a monthly basis. Older contracts, by contrast, may automatically renew for another twelve or even 24 months. Consumers should therefore ensure they provide notice of cancellation in good time to avoid remaining tied to higher prices.
Puschmann urged the federal government to pay greater attention to the rising costs of electricity and gas. He noted that policymakers are currently focusing heavily on fuel prices at the pump. “Fuel prices are immediately visible, whereas higher gas prices only reach households after a time lag.” Yet, it is clear that electricity and gas will continue to place a significant burden on consumers. One way to provide relief would be to lower the electricity tax to the European minimum level. This would save a household with an annual consumption of 4,000 kilowatt-hours approximately 90 euros, and a couple with an annual consumption of 2,500 kilowatt-hours about 60 euros.
Author: AFP – gav/
Sources: AFP Press Portal