German gas and electricity consumers should be prepared for dramatic price increases if Russia is cut off by the European Union, E.ON Germany’s chief executive stated However, prices have been rising quickly even without this move.
Filip Thon, a German journalist who spoke to RND, stated that wholesale retail prices were already 200% higher than last year and that electricity prices are eight times more this spring than they were a year ago.
Thon stated that prices will rise further if Russia bans gas imports. This would depend on how much Germany expands its reserves. Germany’s current reserves are around 25 to 27 per cent of their capacity. Thon also said that Germany is currently increasing its reserves to support the next cold season.
Thon stated that “the situation is very tense even without a stop to deliveries”, and added that ending Russian gas imports would have “drastic implications for the German economy.”
The CEO called on the state to offer more financial support for private households in order to ease the blow. This could include lowering energy taxes.
Germany has been benefited for years from Russian energy imports. Now, it is in turmoil over how to end a business relationship which critics claim is funding Russia’s invasion. Russia supplies 40% Europe’s gas requirements.
German Finance Minister Christian Lindner rejected Monday’s EU embargo on Russian Gas Imports. This is as a result of increasing pressure on the bloc to impose sanctions against Russia’s energy sector.