energy price shock
Gas costs 73 percent more than in 2021
01/28/2022 11:04 am
Energy prices have risen drastically since last year. Consumers who cook and heat with gas now pay almost twice as much. The price of electricity has also increased by double digits, according to the BDEW. The industry association is calling for households to be relieved.
According to industry information, anyone who chooses a new electricity tariff in January pays an average of 12.5 percent more than the annual average for 2021. and Water Management (BDEW) in Berlin. For comparison: in 2021 the average was 32.16 cents, in 2020 it was 31.81 cents.
Anyone who is currently signing up for a new gas tariff for a detached house, for example, pays an average of 12.21 cents per kilowatt hour for an annual consumption of 20,000 kilowatt hours, which is a full 72.9 percent more than the annual average for 2021. In 2021 the average was 7.06 cents, in 2020 at 5.97 cents.
Almost half of all apartments in Germany are heated with gas. As a reason for the increases in electricity and gas, the industry association stated higher procurement costs for utility companies due to extremely high wholesale prices.
Price explosion on the futures markets
For example, prices on the futures market for electricity, where suppliers buy electricity over the long term, rose by more than 300 percent between January and December 2021. On the futures market for gas, prices even more than quintupled during this period.
“These extreme price increases on the electricity exchanges must be taken into account by the energy suppliers in their price calculations,” said Kerstin Andreae, Chair of the BDEW Executive Board. Thanks to long-term procurement strategies, most utilities could cushion part of the price increase. Rising energy demand as a result of the global economic recovery in 2021 is believed to be a key reason for the rise in wholesale prices.
Andreae called for financial help for the households because of the growing burden. “In view of the rising electricity and gas prices, energy consumers urgently need to be relieved.” In particular, the tax burden on energy must be reduced.