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German households could see ‘four-digit’ rise in energy costs this winter

People in Germany could see energy prices go up by more than €1,000 this winter, Economics Minister Robert Habeck has claimed.

Houses in Leipzig in winter
Houses in Leipzig in Winter. Photo: picture alliance/dpa | Jan Woitas

In an interview on ZDF’s Markus Lanz, the Green Party politician warned households that the cost calculations from their energy providers for next year would likely be several times higher than they were in previous years. 

“We have been able to observe the prices on the energy markets,” Habeck said. “These suggest price increases in the four-digit range – which can sometimes be a month’s income for a family – and it is no longer possible to avoid these price increases. What naturally arises as a political question is whether we have to leave the people alone with this.”

Calling on people to start saving energy where they could, Habeck warned that even greater cost increases could sharpen the social divide.

“I think that’s a political assignment,” he said. “We can’t allow the energy costs to divide the country even more.”

READ ALSO: Germany prepares energy bailout law as gas prices soar

Just one year ago, the cost of a megawatt hour of gas was around €20. This has since risen to around €140 per megawatt hour, leading to fears that bills could be as much as eight times higher than before.

However, Habeck said that bills would be based on yearly averages rather than the most recent prices, meaning the costs wouldn’t be as high as some fear.

“It’s won’t be as terrible as that,” he said. “At least, we hope it won’t.” 

He said both businesses and consumers needed to start changing their behaviour in light of the limited gas supplies, for example by loosening rules that require bakeries to offer the same range of goods both in the morning and in the evening. 

“If Germany has the problem that it has to buy a rye roll in the evening because there are no more oat rolls, these are simply luxury problems that we can throw overboard,” he said. “Maybe it will do everyone good to eat the rolls that are still there.”

Habeck rejects price caps

Just hours before appearing on Markus Lanz, Habeck spoke out against the introduction of price caps on energy. 

Speaking at the International Trade Fair in Munich on Tuesday, he told the audience that a reduction in energy prices would send the wrong signal to consumers. 

“A cap on prices would be a signal in the case of a scarce commodity: energy is not valuable, take what you want,” he said.

Amid fears that Russia could retaliate to sanctions by turning off the gas taps, the Economics Ministry has poured millions of euros into a campaign to encourage people to start saving energy where possible.

Habeck has also set legal requirements for the gas storage facilities to be full by winter. This would ensure that Germany has enough in reserve to see it through the three coldest months of the year. 

Robert Habeck International Trade Fair

Economics Minister Robert Habeck speaks at the International Trade Fair in Munich on Wednesday, July 6th. Photo: picture alliance/dpa | Sven Hoppe

“We are not just passive,” Habeck told ZDF. “We don’t have to stand by in amazement at what’s happening.”

However, the federal government has come under criticism from Bavarian state premier Markus Söder for not doing enough to check whether energy supplies would be sufficient in an emergency.

In a letter sent to Habeck and obtained by DPA, Söder complained that no stress test had been carried out in Bavaria to see if lower gas levels could sufficiently power homes and businesses in the state.

READ ALSO: ‘Scarce commodity’: Germany raises gas alert level as Russia reduces supplies

“Overall, we have too little information in Germany about what is really happening now,” Söder told Bavarian broadcaster BR24. “When is gas coming? What is the current status of the gas supply? And what contingency plans prevail then if the gas doesn’t come?”

Pointing to the example of Italy, he said other countries had already secured their gas supply.

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MONEY

How German ministers want to protect online ticket purchases

Once a year, consumer rights ministers from Germany's federal and state governments gather for a joint conference. This year, improving online ticket sales and better data protection measures are on the agenda.

How German ministers want to protect online ticket purchases

North Rhine-Westphalia’s consumer protection minister Silke Gorißen (CDU) will present proposals for further consumer protections for online ticket sales at the consumer ministers conference (VMK) on Thursday and Friday. 

Gorißen is pushing to make online ticket sales more transparent and give consumers more rights to back out of purchases if they don’t have enough information. 

Under the proposals, consumers would receive more information before purchasing tickets, such as details on the number of tickets sold by each provider and the prices for different seat categories.

Currently, ticket prices are often only visible during the purchasing process. 

The ministers will also consider whether consumers should be granted a right of withdrawal when buying tickets online. 

READ ALSO: How Germany is making it easier for consumers to cancel contracts

“The process of buying tickets is becoming increasingly complex and confusing, often limited to very narrow time windows,” Gorißen told DPA ahead of the conference. “I expect providers to act more in the interest of consumers. The market power of large ticket portals should not result in unclear and non-transparent sales.”

More data protection online

According to DPA, Gorißen also wants users of telecomms services to be better protected when it comes to their personal data. 

NRW’s consumer minister believes providers of emails, chats, or telecommunications services should be required to put measures in place to detect malware that’s designed to steal personal information from users. This should be done at the EU level, Gorißen said. 

Moreover, Gorißen says there should be more information on online safety made available through a consumer hotline. 

“IT security responsibility should not solely depend on the digital competence of users,” the CDU culture minister explained. “Protection against cyberattacks must become a societal responsibility.”

READ ALSO: The German mobile companies with the best – and worst – coverage

The proposals are set to be voted on by consumer ministers on Friday. 

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