Prices remain at a high level: no easing in energy costs in sight

Prices remain at a high level
No relaxation in sight of energy costs

Energy prices for electricity, gas and heating oil will already reach record levels this year. Comparison portals also expect a massive increase in the coming year. Customers have to expect price increases from numerous suppliers.

The massive rise in the price of electricity, gas and heating oil has significantly increased energy costs for consumers this year – and there are no signs of easing in the coming months either. “At the turn of the year, energy prices will continue to rise,” explained the comparison portal Verivox. According to information from the Check24 portal, numerous suppliers are increasing their prices at the turn of the year.

Energy prices had already reached record levels this year. According to Verivox, the prices for electricity, gas and heating oil rose faster than ever. According to Check24, the price of electricity for consumers in the basic supply reached an all-time high in December with an average of 33.9 cents per kilowatt hour (kWh). “Due to increased costs for electricity generation in coal and gas power plants, production declines in renewable energies compared to the previous year and at the same time great demand from the economy, the electricity prices are currently particularly high”, explained Steffen Suttner, Managing Director Energy at Check24.

Current gas deliveries from the USA have eased the situation somewhat and the electricity price on the exchange has fallen in the past few days, but it remains high. According to Verivox, the gas costs for a household with an annual consumption of 20,000 kilowatt hours (kWh) in December averaged 1704 euros per year. At the beginning of the year it was 542 euros less. According to Check24, a sample household with 20,000 kWh currently pays an average of 1932 euros a year for gas – an increase of almost a third (29 percent) within one year.

The price of heating oil, which essentially follows the development of international crude oil prices, also saw a significant increase when the global economy rebounded after the first corona shock wave. In January 2021, 100 liters of heating oil cost around 49 euros net according to Verivox; in December it was around 69 euros – an increase of around 41 percent.

Suppliers pass on increased purchasing costs to customers

Check24 advised consumers with oil heating, if they still need oil for the current winter, to fill up the tank at least partially. “The prices for heating oil are still high, but no longer at the record level of the past few weeks,” explained Suttner. Looking ahead to the coming year, Verivox expects that the price of heating oil will “probably” continue to rise due to the rising CO₂ price.

In addition, higher network charges will be due for gas in 2022. “This is forcing almost all gas suppliers to adjust their prices upwards in some cases considerably,” explained Verivox energy expert Thorsten Storck. According to Check24, the basic gas suppliers have already increased prices or announced price increases in 961 cases this winter. In 20 percent of the cases, the prices doubled, 32 suppliers even tripled the price.

This wave of gas price increases was “not least due to the rising CO₂ tax,” explained Suttner. In addition, the suppliers would pass on increased purchasing costs to the customers. In the case of electricity, Check24 has recorded price increases or related announcements from basic suppliers in 499 cases so far.

“Most of them are valid from January 1st – so it will be even more expensive at the turn of the year,” said the portal. Verivox pointed out that the network charges are also increasing when it comes to electricity prices. Despite the cap on the EEG surcharge, which will be reduced from 6.5 cents to around 3.7 cents per kilowatt hour in 2022, electricity will therefore “become more expensive on average” at the turn of the year.

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