MONTHLY gas bills in Germany will likely be three times higher next year due to reduced imports from Russia, the head of the energy regulator warned, while the director of a distribution company is proposing a price freeze because of possible unrest. “Citizens are already receiving heating bills that are twice as high, even before the war in Ukraine has been factored into the equation,” Federal Network Agency head Klaus Mueller said in an interview with the RND news agency.

“They must be prepared that from 2023 they will be at least three times higher,” Mueller stressed, adding that market prices have in some cases increased sevenfold. “This will not immediately and fully affect all consumers, but at some point (that price) has to be paid. That is why it absolutely makes sense to save more already now,” he said.

According to him, the higher procurement costs could be covered by billions of euros in subsidies to gas companies or by simply passing the costs on to consumers and providing state aid to those who cannot pay the higher prices.

Imports of Russian gas

Germany relies heavily on imports of Russian gas, but supplies from that source have been significantly reduced after Western countries imposed sanctions on Russia over its invasion of Ukraine. German officials currently fear that Moscow may not resume deliveries through the Nord Stream 1 pipeline after maintenance work is completed on July 21.

The German government is constantly calling on consumers and industry to save energy and is trying to increase supplies before the start of the heating season due to fears of a serious shortage. Mueller stressed that in the event of a serious energy crisis, household supply is guaranteed under German and European laws, adding that it is “not very likely” that citizens will be left without gas.

Worst-case scenario

“Even under the worst-case scenario, Germany should still receive gas from Norway and from terminals in Belgium and the Netherlands, and soon also directly from terminals on the German coast,” the head of the energy regulator explained. Roland Warner, head of the municipal gas distribution company in Chemnitz, told Reuters that the government should limit price increases.

“We must help average households and set an upper limit on energy costs,” Roland Warner said, warning that annual bills could rise by October from the current 1,500 to 4,700 euros.

“If unrest starts, the state will not be able to cope with it,” Warner said. The Ministry of Energy did not immediately respond to a request to comment on his statement.

Energy Minister Robert Habeck has so far rejected appeals for the state to cap prices, stressing that the government cannot fully compensate for the difference between the market price and the maximum permitted price and that such an attempt would send a signal that energy does not need to be saved.

Some analysts warn that the decline in living standards could undermine public support for the firm stance of Western governments toward Moscow. A poll by the German public opinion research agency Forsa, published on Wednesday, showed that support for a boycott of Russian gas fell from 44 percent six weeks ago to only 32 percent now, Reuters reports.

Source: index.hr