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CLOSE UNTIL FURTHER NOTICE: Installation of the Nord Stream 1 Pipeline in Lubmin, Germany.
Electricity and gas prices are skyrocketing. This is because Russian President Vladimir Putin (69) has cut off gas supplies to Europe. Because – as in Germany for example – a significant part of the required electricity is produced using gas, electricity and gas prices are closely linked.
Electricity prices are skyrocketing in Switzerland Electricity Commission (ELCOM) calculations An average increase of 27 percent by 2023. We are already paying an average of 70 percent more gas than last year. Sometimes the situation in surrounding countries is dramatic. It displays data from Home Energy Price Index (HEPI), It compares electricity and gas costs for households in 33 European capitals.
Highest prices in London and Amsterdam
Accordingly, households in London pay more for their electricity: 0.64 euros per kilowatt hour as of August 1, 2022 in the British capital. There are repeated protests against high electricity prices – and many residents refuse to pay their bills.
Bern is also included in the HEPI list. The Swiss capital was ranked 21st with 0.22 euros at the time of the survey. Households in Copenhagen, Denmark (0.55 euro/kWh) pay the second highest for electricity in the ranking of European capitals, followed by Rome third (0.54 euro/kWh).
At 0.34 Euro/kWh, gas consumption in the Dutch capital Amsterdam on August 1st is most noticeable. Copenhagen ranks second for gas (0.31 euro/kWh), followed by the Swedish capital Stockholm (0.24 euro/kWh) and Bern 13th, when gas costs 0.18 euro/kWh. Work.
Cost increases dramatically in Athens and Brussels
As the HEPI data shows, the price curves for both electricity and gas are steeply rising. By 2021, the price of gas in Europe will almost double. The reason at that time was that the demand of the industry increased as the Corona crisis subsided. Since the start of the Russian war of aggression in Ukraine and the imposition of Western economic sanctions against Russia, the problem has become even more acute – and given the global political climate, it is unclear when the curve can be expected to flatten.
The latest figures for August show that electricity and gas prices continue to rise dramatically. Monthly price increases since August 1 were particularly strong in Greece and Belgium. In Greece’s capital Athens, electricity costs have increased by 34 percent in less than a month. In the Belgian capital it was 26 percent over the same period.
Both cities have been hit hard by monthly gas price hikes: in this ranking, they have risen to 41st and 41st respectively. 39 percent in second place (Athens) and third place (Brussels). Gas prices have risen by 45 percent in the Bulgarian capital, Sofia.
Nord Stream 1 is now inactive
Although 20 percent of the maximum possible volume was supplied to Germany through the Nord Stream 1 pipeline in early August, no gas is now flowing west through this route. In other words, prices will continue to rise.
The consequences for private households today are already dramatic. For example, this can be seen in Germany. The country has also climbed the HEPI rankings with high electricity and gas prices. As of August 1, a household in Berlin pays 0.44 euro/kWh for electricity (6th place). For gas it is 0.22 euro/kWh (fourth place).
Three times more expensive in Germany
German Comparison service Verifox Calculating additional costs for price increases: An example is a family home with an annual gas consumption of 20,000 kWh. At the time calculated on August 23, this was 4,263 euros based on average costs nationwide. A year ago, average costs were still 1,257 euros. It costs three times as much and an additional 3,006 euros. The price hike is 239 percent.
Thorsten Storck, energy expert at Verivox: “The consequences of the gas crisis are hitting households hard. High costs for gas disappear elsewhere and lead to high debt. The situation will get even worse from October. “Then the VAT on natural gas will be reduced to 7 percent, but at the same time many taxes will come into force. will come,” says Stork.
The new taxes cancel the relief
The German federal government under SPD Chancellor Olaf Scholz (64) decided on a so-called gas purchase tax in early August. From October, consumption of 20,000 kWh will cost an extra 484 euros. There is also a gas savings tax of 12 euros. In addition, control energy and switching charges will be increased. “Tax cuts cannot offset higher costs,” Stork clarifies. Taking taxes and reduced VAT into account, year-on-year costs would increase by 257 percent.
Rising electricity costs also have a major impact on Germany’s budget. Stark expects prices to rise further. More recently, electricity costs for a three-person household with an annual consumption of 4,000 kWh in Germany averaged 1,832 euros. The average price 12 months ago was still 1,213 euros. Annual expenses increased by 620 euros or 51 percent.
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