German grid agency head says prices for electricity and gas will remain high in 2024
Rheinische Post
Prices for electricity and natural gas in Germany are likely to stay elevated for the foreseeable future, the head of the country鈥檚 Federal Network Agency (BNetzA) has said. 鈥淭he times of cheap energy are over,鈥� agency head Klaus M眉ller told newspaper Rheinische Post in an . 鈥淭he price level is higher than before Russia鈥檚 war of aggression [on Ukraine]. And this will not change any time soon,鈥� M眉ller said. As long as Germany continued to use a significant share of fossil fuels in its energy mix, this was unlikely to change, he argued. 鈥淚 don鈥檛 think we will see the [high] prices from 2022 again, but I also don鈥檛 think that we will return to the pre-crisis level.鈥�
Apart from the higher price level on wholesale markets, power customers would also be affected by the government鈥檚 decision to cancel support payments for grid fees in the context of its austerity measures related to the 2024 budget crisis. 鈥淭his has been a difficult decision for the government. Unfortunately, you cannot save money without causing any consequences,鈥� M眉ller said. The cancelled subsidies worth about 5.5 billion euros would mean that an average household with four people would have to pay about 120 euros more per year for grid fees, he added.
In a different with the Rheinische Post, the CEO of energy company E.ON echoed the BNetzA head鈥檚 prediction of high energy prices throughout the new year. Company head Leonhard Birnbaum said energy providers had to pass on higher grid fees to customers in the next months, adding that a higher value added tax for gas would compound the price increase for energy. While producing electricity with wind and solar power is relatively cheap, precautionary measures for times of little renewable power output meant that costs increase overall, Birnbaum said. However, the E.ON CEO argued that this did not mean at all that returning to nuclear power is an option for the country. 鈥淏y now, this has become impossible from a technical point of view,鈥� Birnbaum said. 鈥淭he story of nuclear power in Germany is over.鈥�
