The future in crisis
That’s what’s coming to us in terms of energy, finance and nutrition
© Svetlana Lukienko / Adobe Stock
From one crisis to the next – this is what everyday life looks like for many at the moment. The pandemic is not over yet, when the war between Russia and Ukraine begins – with consequences for the whole world. BRIGITTE spoke to the consumer advice center about the topics of nutrition, finance and energy. There’s still a lot to come.
A lot is still being saved in Germany, be it for a pension, a nice holiday, a car or simply a small cushion to cope with emergencies such as a broken washing machine. That will most likely change now. Many of the hard-earned cushions will probably be eaten up by additional payments for electricity and gas.
“The exchange price for gas has multiplied in recent months,” says Sascha Beetz, officer for climate protection, energy and sustainability at the consumer advice center in Schleswig-Holstein. This price increase will now be passed on to customers plus the gas surcharge from October. Although the value-added tax on gas will be reduced from 19 percent to seven, a high back payment amount will still pile up.
Reserves for the gas bill must now be formed
The background to the increased prices is the lack of deliveries from Russia. However, the gas importers have to fulfill their contracts and therefore buy the gas on the market at high cost. In order to support the companies with the high procurement costs, part of the additional costs are passed on to the consumers.
This means that consumers are burdened on the one hand with the gas surcharge (2.4 cents per kilowatt hour) and on the other hand with the overall increase in gas prices. A four-person household with an average consumption of 20,000 kilowatt hours only has to pay around 480 euros a year plus VAT for the surcharge. A kilowatt hour of gas (for new customers) currently costs 39.2 cents (as of September 8, 2022). For existing customers, the prices are usually lower. In total, this can result in an amount of over 7,000 euros.
Dependence on fossil fuels must end
In general, it can be said that the days of cheap fossil fuels are probably over, says Beetz. With the dependence on fossil energies, we as customers would also be responsible for the fluctuations in prices on the market. “The consequences of the Russian war of aggression are another symptom of this,” says Beetz. On the one hand, this means that reserves must first be formed for the upcoming additional payments and, on the other hand, that we have to find a long-term way out of our dependence on fossil energy and on to renewable energy.
But it is not only in the energy sector that things are getting tight, food prices have also risen. This particularly affects households with low incomes. “If prices rise to such an extent that food savings have to be made, the risk of malnutrition also increases,” says Sascha Beetz. The money is already not enough for many people to guarantee a varied diet. This leads to what is known as nutritional poverty: although sufficient calories are consumed, there are too few vitamins and other important nutrients.
Here are a few tips from the experts when money for groceries is tight:
- Less meat and animal products. Eating meat once or twice a week is enough. Because: A further price increase is to be expected in this sector in particular, since Germany imports large quantities of animal feed.
- Fresh instead of finished products. Finished products sometimes seem to be the cheaper choice, but they don’t fill you up for long. In addition, freshly cooked food is richer in vitamins and nutrients.
- tap water instead of bottled water. The tap water in Germany has a very good quality and is significantly cheaper.
- Store properly and do not throw away. Shelf life foods should be sorted by date. In addition to good sorting, compliance with the cooling zones also helps in the refrigerator.
- plan your purchase beforehand. If you make a plan for the week and only buy the things you need that are best on a list, you will save and throw away less.
In this time of crisis, many look at their finances, they calculate what is currently in the account, what can be put aside, where can savings be made, what can be reduced and how much has to be paid in the end? Questions to which no satisfactory answers can be given at present. “In our consultations, we notice that consumers are concerned about the level that energy prices will still reach and are already being significantly reduced,” says Michael Herte, head of the department for market, law and financial services at the consumer advice center.
Women in particular are suffering financially from the current crisis
“It is with great concern that I observe how women in particular are less and less able to invest in private old-age provision, since there is less money left to save / invest due to the rise in prices,” Herte continues. And especially for women, it is important to make provisions for yourself. Due to the fact that their working lives are often interrupted by unpaid care work for children or relatives in need of care, women are much more likely to face poverty in old age.
The financial expert also sees a danger in over-indebtedness, i.e. when a person can no longer meet the ongoing payment obligations on their own. Over-indebtedness can be quickly triggered by consumer spending, among other things. Installment purchases or deferrals would initially help here and reduce the mountain of costs somewhat.
However, the rising prices also affect those who do not yet earn their own money – the children, according to the expert. Extracurricular activities such as sports or other leisure activities are usually associated with costs. When these can no longer be paid for, many turn to televisions, games consoles and the like. “Here, the public sector should expand attractive leisure activities, when it is clear that many parents will limit themselves to the bare minimum in the near future,” says Herte.
Additional sources used: ndr.de, Verbraucherzentrale.de, bundesregierung.de, swr3.de