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Germany says gas reserves filled to 95 percent sooner than expected

Germany on Friday said it had filled its gas reserves to 95 percent of capacity faster than expected as it prepares for a winter deprived of Russian energy supplies.

Published: 14 October 2022 16:58 CEST
Three lit hobs on a gas oven
Three lit hobs on a gas oven. Photo: picture alliance/dpa | Lino Mirgeler

Europe’s largest economy had been heavily dependent on Russian gas and has raced to bolster its reserves after deliveries from Russia halted following Moscow’s invasion of Ukraine.

“Storage levels today surpassed an average level of 95 percent,” the economy ministry said in a statement.

“That shows that regulation is having an effect and supply is strengthened for the coming winter.”

Berlin in July adopted a raft of measures so that gas stocks would reach 95 percent of capacity by November. Economy Minister Robert Habeck called Friday’s report an “important milestone”.

READ ALSO: France begins sending gas to Germany in ‘act of EU solidarity’

He said government measures had managed “to regulate a market that was largely unregulated in the past decades so that we could fill the storage facilities faster than expected despite the halt in deliveries via the Nord Stream 1” pipeline from Russia.

Habeck’s ministry said that in October 2021, months before the current crisis began, storage was at an average of 72 percent versus 95.14 percent today.

The government said energy-saving measures in recent weeks and massive purchases of gas from other suppliers had led to significant progress.

It has spent 1.50 billion euros ($1.46 billion) to buy liquefied natural gas, with Qatar and the United States being major suppliers, and five new LNG terminals are planned to import it by sea.

Meanwhile France said this week it had started sending natural gas to Germany as part of its pledge to ensure EU energy solidarity in the face of Russian-imposed shortages in response to Western sanctions.

Berlin has also introduced measures allowing more coal-based power and reducing energy consumption in public buildings.

READ ALSO: EXPLAINED: When should I turn on my heating in Germany this year?

“Now we need to continue to strengthen supply for the coming winter,” Habeck said on Friday.

The German government warned this week that the country would sink into recession next year as the economy battles skyrocketing energy costs following Russia’s gas shutdown.

Unveiling the government’s latest forecasts of 0.4 percent economic contraction and seven percent inflation for 2023, Habeck painted a dark picture of a “serious energy crisis”.

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PRACTICAL TIPS

How 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.

Published: 22 May 2024 11:23 CEST
How 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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