Gas Alert: Are Consumer Prices Exploding?

Gas Alert: Are Prices Exploding Now?
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German Energy Minister Habeck has declared the alarm level in the gas emergency plan. How expensive this will be for consumers and how you can make provisions now. An overview.

Will prices go up now?
Everyone who now concludes a new contract must expect price adjustments. Customers who do not have a price guarantee will also receive higher bills. For most, however, the prices will not rise for the time being. The reason is a change in the law from May 12th.

A price adjustment clause is included in the Energy Security Act, which allows suppliers to pass on high purchase prices for natural gas directly to their customers, even with long-term contracts. However, this possibility of price adjustment was linked to further conditions. In addition to the alert level, the Federal Network Agency must formally determine “a significant reduction in the total gas import volume” and then publish it in the Federal Gazette.

So it’s not just about how much gas flows through the Baltic Sea pipeline. The government is refraining from making this statement for the time being. A direct price transfer could overwhelm many households and companies. The coalition is therefore considering activating the price adjustment clause under no circumstances before further relief is in force.
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News | Today Journal Gas Crisis: Alert level declared
Federal Minister of Economics Habeck puts the second stage of the gas emergency plan, the so-called alarm stage, into effect. It is a clear signal to industry and private consumers to save gas.…

Federal Minister of Economics Habeck puts the second stage of the gas emergency plan, the so-called alarm stage, into effect. It is a clear signal to industry and private consumers to save gas. The security of supply is currently still guaranteed.

What additional costs are there then?
Should the Federal Network Agency soon actually determine a “structural disruption”, there is a risk of a price explosion for all gas customers. However, it is difficult to predict how much of an additional burden will come to individual consumers, because nobody knows how the gas supply will develop over the next few months. For this year, however, the Federation of German Consumer Organizations expects additional payments of 1,000 to 2,000 euros per household on average. A good indicator of the potential costs is a look at the commodity exchanges.

Natural gas to be delivered on the Dutch trading platform TTF in July cost around 129 euros per megawatt hour on Wednesday. On Monday a week ago, i.e. before the throttling, the price was still 83.40 euros. For comparison: in the past, contracts were often concluded for 20 to 30 euros.

How much can suppliers raise prices?
If the requirements for this are met, the energy suppliers are allowed to raise the prices to an “appropriate level”. However, this is not capped at the top. Private households are then also not protected from extremely high gas prices. Not even if they have a so-called price guarantee.
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News | today 19:00 “Price increase subject to conditions”
Will the alert level lead to price increases? ZDF correspondent Frank Bethmann explains what the alert level means for consumers.

Will the alert level lead to price increases? ZDF correspondent Frank Bethmann explains what the alert level means for consumers.

How likely is it that the next stage in the gas plan will be announced?
Another burden is foreseeable: upcoming maintenance of the gas pipeline Nord Stream 1 is planned from July 11th. This could take about ten days. If the quantity supplied is then increased, the situation on the gas market could ease. Should the delivery volume then remain at 40 percent or even be reduced again, things could happen quickly.

Is the gas supply currently guaranteed?
At the moment our supply of gas is secured. The reservoirs are almost 60 percent full. But beware. It’s summer at the moment. We are simply using less gas, so now is the time to plan ahead. You can’t get through the winter with gas storage tanks that are 60 percent full.

What can consumers do now?
It’s the little things that have savings potential. An optimally adjusted heating system, for example, or the famous energy-saving head in the shower. But part of the truth is also: many things that would bring a lot, such as insulating houses, k

cannot currently be implemented simply because there are no craftsmen.

News | Politics Habeck calls out the alert – what that means
Federal Economics Minister Habeck has declared the next stage of the gas emergency plan – the alert stage. What does this mean for consumers and the economy? An overview.

Gas emergency plan – Habeck calls the alarm level – what that means
Federal Economics Minister Habeck has declared the next stage of the gas emergency plan – the alert stage. What does this mean for consumers and the economy? An overview.