Rising gas prices: “tripling of discounts possible”

The President of the Federal Network Agency warns that gas prices could triple. In the event of a gas shortage, private households would be protected “to the end,” said Müller. The EU has a first draft of an emergency plan.

The President of the Federal Network Agency, Klaus Müller, has warned that gas prices for consumers could triple or rise even more. “For those who are now getting their heating bills, the deductions are already doubling – and the consequences of the Ukraine war are not even taken into account,” said Müller to the newspapers of the editorial network Germany.

“From 2023, gas customers will have to prepare for the discounts to triple, at least.” It is “absolutely realistic” that customers who currently pay 1,500 euros a year for gas will be asked to pay 4,500 euros and more in the future, said Müller.

People must now make provisions – both technically and financially, he warned. “Increase your deduction voluntarily or put some money aside every month, for example in a special account.” And: “Talk to your landlord or a craftsman if he’s still available. What can you do to optimize the heating?”

About half of the gas boilers in Germany are not well adjusted, Müller said. With a little effort “a big savings effect can be achieved”.

Delivery stop to households “not very likely”

When asked what he thought of passing on the higher procurement costs of the gas traders to the gas customers with a levy, the head of the network agency said: “This is a political decision that has to be weighed very carefully.” You could support the companies with billions. The other variant would be “to announce the prices and then to help those who can no longer afford them”.

Müller also rejected fears in the RND newspapers that private households could be supplied with lower priority in the event of a gas shortage. “The German and European legal situation provides for private households to be protected to the end,” said Müller.

A scenario in which gas no longer reaches people’s homes is “not very likely,” added the head of the network agency. “Even in the worst scenario, Germany will continue to get gas from Norway and from terminals in Belgium or Holland, soon also directly from terminals on the German coast.”

First EU contingency plan

In view of the impending gas crisis, the economy and consumers could face significant energy-saving measures. A draft for an emergency plan by the European Commission provides that public buildings, offices and commercial buildings should be heated to a maximum of 19 degrees from autumn. “Acting now can reduce the effects of a sudden supply disruption by a third,” says the text, which is available to the German Press Agency.

There is now a “considerable risk” that Russia will stop gas deliveries to Europe this year. Companies that can replace gas should reduce their consumption, they say. The aim is to protect industries that are particularly important for supply chains and competitiveness.

Households are also encouraged to voluntarily consume less. “Anyone can save gas, now,” writes the commission. Existing rules stipulate that households and hospitals, for example, would be prioritized in the event of a gas shortage. However, if electricity production is in jeopardy, countries could put the supply of gas-fired power plants for electricity supply through certain protected consumers, it said.

According to the draft, simulations by the regulatory authority ENTSO-G showed that a delivery stop in July would mean that the gas storage facilities could not be sufficiently filled and that there could still be shortages in winter and next year. If there were a disruption in October or later, there would be fewer risks to winter demand. But then you would have less time to react. The implications for member states depend on how dependent they are on Russian gas, it said. Germany is one of the most affected countries.

Associations: No restriction for private households

Possible restrictions for private households continue to meet with criticism from associations in Germany. The background to this are considerations by Federal Minister of Economics Robert Habeck to rethink the EU-wide prioritization of consumers and critical infrastructure over industry in the allocation of gas.

“It’s about elementary needs like a warm meal, warm water or a warm room, and not about luxury goods that can easily be done without,” said the president of the social association VdK, Verena Bentele, the newspapers of the Funke media group. “Especially families with small children, people with disabilities and older, chronically ill people and people in need of care are dependent on a secure supply of gas.”

“With his gas prioritization debate, Habeck unsettles people in need of care and sick people at home, in care facilities and hospitals,” said Eugen Brysch, the board member of the German Foundation for Patient Protection, of the “Neue Osnabrücker Zeitung”. “It’s not up to a federal minister to decide who actually gets gas in winter. The Bundestag is called upon to clarify the question of prioritization in general terms.”

Employer president warns of dramatic effects

Employer President Rainer Dulger is very concerned about the German economy. “It looks as if Russia is severely short of gas or will not supply anything at all in the long run,” Dulger told the Süddeutsche Zeitung. “We are facing the biggest crisis the country has ever had.”