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26 Dec, 2021 10:41

German energy suppliers go bust

German energy suppliers go bust

Another German energy provider has ceased operations as a result of the unprecedented gas price surge on the European market, Focus news magazine reported on Friday.

According to the media, electricity discounter Stromio has become the seventh provider since October to halt supplies to household customers. Most of these companies have filed for bankruptcy. Stromio explained that the move is due to the “historically unique price development in the electricity market.” Industry experts believe that several hundred thousand customers will be affected by the termination.

However, consumers do not have to fear power outages, Focus wrote, noting that in such cases, the local basic supplier initially takes over the supply of electricity as a replacement supply.

According to the Federal Network Agency, cited by Focus, 38 energy suppliers (not including Stromio) have announced the end of supplies in the current year. Twelve of them have already stopped working, the rest are planning to complete their activities by December 31.

READ MORE: Germany reveals Nord Stream 2 plan

In 2021, gas and electricity prices for consumers in Germany rose between 18.4% and 46.6%, and are expected to rise again next year, according to the newspaper Handelsblatt, citing estimates from the consumer portal Verivox.

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