Kerstin Andreae in “Early Start”
‘A higher New Normal’ for gas prices
01/04/2023, 10:25 am
The exchange prices for gas have been significantly lower again for some time, but end customers are not feeling the effects. So there is a fear that energy suppliers could take advantage of the price brakes to keep prices high. The energy lobbyist Andreae, on the other hand, refers to long-term contracts with the suppliers.
The general manager of the Federal Association of Energy and Water Industries, Kerstin Andreae, expects that consumer prices for gas will remain high despite falling prices on the stock exchange. “We will get a new one, a higher one, this so-called New Normal, (…) because we will no longer have this cheap Russian gas in the long term,” she said in “Frühstart” on ntv. “But we won’t have these high peaks like we’ve been experiencing for a long time in the summer.”
In their opinion, an adjustment of the gas price brake is also not necessary. Although the prices on the spot market are lower, the long-term development is decisive. The suppliers would not take advantage of the situation because they are being observed by the Federal Cartel Office. In case of doubt, suppliers would have to “prove that their pricing is correct and based on facts. And the suppliers do not expose themselves to this risk.”
Wholesale gas prices in Europe recently fell to their lowest level in a year. Gas currently costs less than before the start of the Russian invasion of Ukraine at the end of February 2021. The futures contract TTF on the energy exchange in the Netherlands, which is used as a reference, was 72.75 euros per megawatt hour for deliveries in February at the beginning of the year.
Expansion of renewable energies “still far too bureaucratic”
For the first time in years, CO2 emissions in the energy sector increased again last year. Andreae described this as a “worrying development”. However, this cannot be avoided at the moment. In order to replace the missing gas, it was decided by law to generate more coal. Nevertheless, this should not mean a step backwards. “The climate goals must be achieved,” says Andreae. Renewable energies must be massively expanded as quickly as possible.
The government has already come up with some ideas, but more needs to be done, “that means we need a successful attitude right down to the last office,” says Andreae. The problem is not a lack of ideas or projects, but bureaucracy. “They don’t have the space, they don’t have the permission. And those are the decisive factors where we have to get to work.”
In addition, Andreae considers the question of whether nuclear power plants could make a contribution to the German energy supply to have been finally clarified. Federal Transport Minister Volker Wissing had brought up the idea of having a commission of experts decide on extending the service life of the remaining three nuclear power plants. Andreae rejected the FDP politician’s proposal. “We had a council of experts who did a major stress test.” The Federal Chancellor then made use of his authority to set guidelines and made a decision. “I’m assuming that the Chancellor’s word applies,” said Andreae.