Status: 11/19/2021 2:02 p.m.
Today is the deadline by which utilities must report their price adjustment for the new year. Current figures show that gas prices will rise by over 20 percent. The price of electricity is also increasing.
According to a current study by Check24, around 2.7 million households will have to pay more for gas in the coming year. 439 basic gas suppliers have already increased their prices or announced price increases, as the comparison portal announced. Today is the date by which companies must have reported their adjustments by January 1st.
On average, the increase is around 24.6 percent. For a sample household with a consumption of 20,000 kilowatt hours (kWh), this means additional costs of an average of 369 euros per year, according to Check24. Individual companies would even double their prices. Basic suppliers are those suppliers who supply most household customers in a certain network area.
Gas and wholesale prices at record high
The average gas price is said to be at a record high in November. A sample household (20,000 kWh) currently pays an average of 1,424 euros per year for gas. That corresponds to a price of 7.1 cents per kilowatt hour. In the same month last year it was 1174 euros, almost 18 percent less.
A look at the wholesale price also shows how much gas has recently become more expensive. At 94.05 euros per megawatt hour (mWh), this also costs more than ever. In November 2020, one mWh only cost 14.18 euros – an increase of 563 percent.
There are many reasons for the explosion in the gas market. In addition to the gas storage facilities in Europe, which are significantly emptier than in previous years, demand also increased with the end of many corona measures and the associated economic recovery. In addition, there was a lull in the wind in the North Sea, as a result of which the wind turbines there produced less electricity and more gas than usual had to be used to generate electricity. The setback to the Nord Stream 2 project could add to the worries.
Large price difference with basic providers
In addition, the increase in the CO2 tax from 25 euros to 30 euros per ton at the beginning of the year, according to Check24, results in an additional charge of around 24 euros per year for an average household. “Consumers must expect a wave of gas price increases this winter,” emphasized Steffen Suttner, Managing Director Energy.
Switchup, an independent electricity exchange consultant, has also collected figures for today’s reporting date. What is striking about the current price increases is therefore the high difference between the basic suppliers. According to Switchup, the new prices for an annual gas consumption of 20,000 kWh are between 1251 euros and 3715 euros. The average price increase for gas, according to the calculations of the Berlin company, is 23.6 percent, which means additional costs of around 356 euros.
Due to the significant increases, it is advisable for consumers to check whether the increases are appropriate, Switchup said. “In the event of a price increase, you have a special right of termination and you can bypass the major part of the increase by changing provider,” said founder Arik Meyer. Comparison portals or automatic exchange services offer support in choosing the right supplier.
Most suppliers’ electricity prices are also rising
Meanwhile, 192 basic suppliers have already increased their electricity prices or announced increases, Check24 said. On average, the increase would be nine percent and affect around 1.6 million households. For a model household with a consumption of 5000 kWh, this would mean additional costs of an average of 146 euros per year.
On the other hand, 21 basic electricity suppliers reduced their prices at the turn of the year – by an average of 2.3 percent. Around 1.2 million households will benefit from this. On average, a model household saves around 37 euros a year.
The price of electricity also hit a record high for the seventh time in a row this month. The main reasons are the rising prices in wholesale, for natural gas, hard coal and CO2 emission certificates, the increasing demand for electricity and lower generation capacities due to the phase-out of coal. Last year, as many households changed their electricity supplier as last year.