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Media reports show that rising prices for energy and especially for natural gas across Europe could start to hamper German companies鈥� ability to operate. Salzgitter, the country鈥檚 second largest steel producer, said it could not rule out production stops at some plants, business newspaper WirtschaftsWoche聽ed. Producers Swiss Steel Group, which runs several plants in Germany, said it would need an 鈥渋mmediate relief鈥� from the government to keep up its production levels, news magazine Spiegel聽.聽聽鈥淲e look at the rising energy costs with great sorrow,鈥� J眉rgen Kerkhoff, head of industry association WV Stahl, said. The high costs for energy would 鈥渟eriously impede鈥� the steel industry鈥檚 transformation to climate neutral production, Kerkhoff warned, arguing that price developments warrant a reduction of taxes and levies on companies. Together with producers of chemicals, aluminium and cement, steel companies are among the biggest energy users in the economy.聽Construction material producer HeidelbergCement said the 鈥渦nprecedented cost explosion鈥� would force it to increase its own prices in the short term. Energy company E.ON stopped offering new gas supply contracts to households, as drastically higher market prices had forced the company to overhaul its contract structure, manager magazin聽. In September, E.ON stepped in to cover the gas supply of customers of Deutsche Energiepool, the first gas provider in the country to go bankrupt due to the gas price hike. E.ON said it would continue to supply these customers regardless of its decision to stop offering new contracts.聽聽聽

Prices for gas and electricity have reached new record levels in Europe in recent months due to a wide range of reasons. Economic recovery in many countries around the world after the coronavirus pandemic鈥檚 effects have subsided has let demand spike, while renewable power output has been low and gas storages lower than usual after the past cold winter season. Higher prices in the European emissions trading system ETS have also contributed to higher overall costs for energy.