Germany’s Municipal Utilities Expect Permanent Doubling Of Gas, Electricity Tariffs For Customers

From NoTricksZone

By Klimanachrichten

According to an article in Die Zeit, Germans are threatened with additional energy price increases in the future. They expect prices to double permanently.

Germany’s municipal utilities expect a permanent doubling of gas and electricity tariffs for end customers. In view of lower wholesale prices, ‘municipal utilities naturally also want to lower tariffs and will do so as soon as there is room to maneuver.’ But he warned against false hopes, Ingbert Liebing, CEO of the Association of Municipal Enterprises (VKU), told the Neue Osnabrücker Zeitung. ‘In our estimation, it will foreseeably amount to a doubling of gas and electricity tariffs.’ The crisis is no longer quite so dramatic, but not over, he said. Liebing did not name a time frame for the expected doubling of prices. Liebing rejected the accusation by consumer advocates that municipal utilities are now charging astronomical prices. ‘The current spot market and forward prices are not yet so favorable that this is already having a lasting price-reducing effect. For that, they would have to fall even further and, above all, permanently,’ he said.”

As producers or service providers have these price increases, consequently also other prices rise, not only the energy prices. Since wages and salaries are not rising at the same rate, these price increases mean that either savings will be depleted or consumers will cut back on other things. In any case, this is a heavy burden to bear, and it will have a significant impact.