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20 Nov, 2022 12:56

Germans facing huge energy price hike – experts

A reduction in Russian gas exports and lower nuclear output in France are driving costs higher
Germans facing huge energy price hike – experts

Many households in Germany will take another hit from rising energy bills in January, as power and gas suppliers face higher wholesale market prices and soaring grid fees, Reuters has reported, citing the Verivox prices portal.

“The price level for energy is historically high and reducing the purchasing power of households,” a Verivox energy expert, Thorsten Storck, said in a statement.

The portal has monitored 800 electricity and 700 gas providers and found that 137 regional power operators are set to increase prices by an average of about 61%, while 167 German gas suppliers are planning a price hike of roughly 54%. This could result in an overall increase in energy prices of more than 50% in Europe’s largest economy.

The electricity bills of German families in November have risen by 5% since the start of the year, while gas bills surged by more than 40% above January’s level, Reuters said.

According to Verivox estimations, the extra average cost for a household using 4,000 kilowatt hours (kWh) of electricity per year would be €784 ($813), while a typical household using 20,000 kWh of gas would see an increase of €1,247 ($1,294) per year.

Such a dramatic price growth in energy-dependent Germany stems from the plummeting supplies of Russian gas and lower nuclear output in France, which is struggling to restart all of its reactors ahead of winter. Experts say that energy inflation is likely to continue despite a package of emergency measures by the government.

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