He left open the possibility of causing social unrest in Germany a representative of a company in the energy sector as the cost of energy for households could triple as the supply of Russian natural gas dwindles.
In an interview with German media group RND published today, Klaus Müller, who heads the relevant federal regulatory authority, urged consumers to reduce their consumption in order to save money.
In an interview with Reuters, the head of municipal works in the city of Chemnitz, which has one of 900 public utilities active in Germany’s energy sector, said:We need to help households so there is a cap on energy costsRoland Varner said, warning that annual bills of €1,500 are likely to rise to €4,700 in October. “In the event of social unrest, the state will not be able to deal with it,” he estimated according to APE-MPE.
The Energy Department did not immediately respond to a request for comment.
Critical period for Germany
Energy Secretary Robert Habeck has in the past rejected calls for the state to impose a cap on oil prices. energystating that the state cannot fully compensate for increased prices and that an effort in this direction would send the wrong message about the need to save energy.
After decades of prosperity on the back of cheap Russian gas, Europe’s largest economy is facing a critical period in its growth trajectory as Russia cuts gas flows.
Western governments say Moscow is retaliating against sanctions imposed after its invasion of Ukrainebut Moscow is citing technical problems.
Some analysts warn that public support for a hard line against Moscow could weaken further if everyday conditions worsen further.
A Forsa poll released yesterday found that support for a boycott of Russian gas has fallen from 44% six weeks ago to just 32% today.
With spot delivery prices rising, Miller warned that end consumers on fixed-price contracts, will find themselves paying double the price today, while energy costs for the same households will triple at the end of the summer.
“Some prices in daily trading have increased sevenfold. This whole situation will not be addressed immediately. It will not be dealt with as a whole, while in the end, the price will have to be paid,” he said.
Source: News Beast
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