In light of low gas storage levels, the Federation of German Consumer Organizations (vzbv) has warned of rising prices for gas customers. “Low storage levels would further exacerbate the already strained situation on energy markets during the upcoming heating season,” vzbv executive board member Ramona Pop told the Rheinische Post (Thursday edition). “For private households, this could mean higher energy prices.”
According to the comparison portal Verivox, prices for new customers have already risen significantly. While the cheapest offers stood at around eight cents per kilowatt-hour in early March, they have since risen to ten cents. “For a single-family home with an annual consumption of 20,000 kWh, this translates to an increase in costs of around 400 euros,” Verivox explained.
“Prices are rising fastest for new customers because these offers are usually calculated with particularly tight margins,” explained Verivox energy expert Thorsten Storck. “However, prices for existing customers will also be raised over time.”
German gas storage facilities are currently only just over 50 percent full. The reason is the high global market prices that have persisted for months due to the war involving Iran. The closure of the Strait of Hormuz has reduced the global supply of liquefied natural gas (LNG). Asian countries that usually source gas from the Gulf states are turning to other suppliers.
“We are monitoring gas storage levels very closely and see the potential challenges for the coming winter,” said consumer advocate Pop. “Wholesale gas prices have been rising significantly since the start of the war in the Middle East.” Pop advised gas customers to exercise caution: “Consumers should check now whether their contract includes a fixed price that extends beyond the winter,” she said. “That offers initial protection against rising prices.”
At the same time, it is worth “comparing prices and, if necessary, switching to a cheaper provider,” said Pop. “This applies particularly to households on basic supply contracts.”
Verivox also emphasizes this point. “Gas prices for low-cost new contracts are currently still significantly lower than the rates paid by many existing customers,” the portal explained. “You can switch even if your current contract still has a few months to run: there are suppliers that allow you to lock in today’s rates for up to twelve months in advance.”
Author: AFP – pe/yb
Sources: AFP Press Portal