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ENERGY

Germany says must brace for ‘unimaginable’ after gas leaks

Germany's interior minister said Wednesday the country must prepare for previously "unimaginable" threats to its energy security after dramatic pipeline leaks the EU blamed on sabotage.

Signs of the Nord Stream gas leak in the Baltic Sea
Signs of the Nord Stream gas leak in the Baltic Sea. Photo: picture alliance/dpa/Danish Defence Command | -

Nancy Faeser said Europe’s top economy would need to enhance its vigilance to address such risks in the wake of the damage to the Nord Stream 1 and 2 energy links between Germany and Russia.

“We have to adapt to scenarios that were previously unimaginable,” she said. “That requires strong security authorities with the necessary resources and powers.”

Faeser called for a rapid probe of the “probable act of sabotage” on the pipelines beneath the Baltic Sea close to Denmark and Sweden so that “those responsible” can be identified.

“Protecting critical infrastructure has top priority,” she said, adding that Berlin had presumed “for months” that there was an “abstract threat to energy infrastructure” given its high profile in the wake of Russia’s war on Ukraine.

READ ALSO: WATCH: Baltic Sea foams as gas leaks from damaged Nord Stream pipeline

Defence Minister Christine Lambrecht said the “troubling incident” underlined the importance of an ongoing “modernisation” of the German navy’s fleet for surveillance in cooperation with partner states on the Baltic.

Methane gas from the leaks are bubbling to the surface of the Baltic Sea in discharges expected to last for a week, until depletion of the gas in the pipelines.

The three outflows from the Nord Stream 1 and 2 pipelines, whose cause remain a mystery, have sent natural gas prices soaring, exacerbating an energy crunch in Europe as it stands on the threshold to winter.

EU foreign policy chief Josep Borrell said that “all available information” indicates the leaks “are the result of a deliberate act”.

Suspicion has focused on Russia, which has cut gas supplies to Europe in retaliation for severe Western sanctions over the war in Ukraine.

Germany, which until recently was highly dependent on Russia energy, will wait for a full investigation of the incident before drawing conclusions, a government spokesman said on Wednesday.

READ ALSO: Who is behind the Nord Stream Baltic pipeline attack?

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PRACTICAL TIPS

How a quarter of German households can save on their electricity bills

Customers can save a high three-digit sum on their household electricity costs, according to calculations done by German price comparison portals. Here's why you may want to switch your tariff.

How a quarter of German households can save on their electricity bills

German households are overpaying for electricity by billions of euros each year, according to calculations carried out on the Verivox price comparison portal.

This is because nearly a quarter of households in Germany purchase electricity via the most expensive tariff group from their local supplier – the so-called ‘basic supply’, or Grundversorgung in German.

But in Germany, customers have energy tariff options, and saving hundreds on your energy bill can sometimes be as simple as checking your current tariff online and switching to a cheaper one in a matter of minutes.

Based on approximately ten million households consuming electricity from the basic supply, Verivox calculates that Germans are overpaying by about €5.5 billion annually. That’s because the average difference between basic supply rates and the cheapest local energy rates currently amounts to 20 cents per kilowatt hour (kWh).

What is the ‘basic supply’ for household energy?

Household electricity in Germany is purchased through different tariffs (Stromtarifs). Through these various tariffs, local energy companies offer different prices for electricity, depending on customer contracts.

The basic supply tariff for electricity can be thought of as the default. When a new house is connected to the energy grid, for example, its electricity will be provided via the basic supply unless the homeowner chooses another tariff option.

READ ALSO: How to change electricity and gas providers in Germany

The basic supply is intended to ensure that everyone has access to electricity, even if they haven’t shopped around for an energy provider on their own. It can also be advantageous in the short term because it can be cancelled at any time, as opposed to other tariffs which typically come with longer contracts.

But the basic supply is comparatively expensive. According to Verivox, basic supply electricity currently goes for an average of 44.36 cents per kilowatt hour (kWh), whereas the cheapest available rates on average come to 24.7 cents/kWh across Germany.

How much can you save?

At current rates, you can expect to save about 44 percent on your electricity bill if you switch from basic supply to the cheapest option with a price guarantee. 

That amounts to significant savings, considering that annual electricity costs regularly come to a few thousand euros in German households.

The Hamburger Abendblatt reported that a three-person household consuming 4,000 kWh would save an average of €786.

These prices will vary from provider to provider and from region to region. 

Keep in mind that choosing other tariff options often comes with some additional fees. Still, in many cases taking a look at different electricity tariff options can save households some money.

Also, switching tariffs is different from switching your energy provider. If you currently get basic supply electricity from Vattenfall, for example, you could potentially switch to a different tariff option while maintaining your business with them. But if you are between contracts, or currently on basic supply, you could also consider switching providers.

In this case, a comparison portal like Check24 can be useful to get an idea of which companies offer the best rates.

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