Distortions in the gas market often have negative consequences.
(Photo: REUTERS)
The anger about the gas surcharge is a very German problem. One of the reasons why the other EU countries can do without this construct is that the energy companies there can pass their costs on to customers more easily, while in Germany rigid contracts with fixed prices prevent this.
At the beginning of the gas crisis, Germany’s uniqueness still seemed like a strength: while Spain, Portugal, Greece and Italy were desperately looking for ways to protect consumers from rising prices, the federal government was able to sit back and relax. Because their voters didn’t feel the swings in the markets at all at first.
Southern European countries introduced price caps and subsidies. With the support of Germany, the EU Commission put the brakes on these plans. She was concerned that the markets would be distorted and there would be no incentive to save gas.
The argument is correct. At the same time, however, the federal government overlooked the extent of the market distortions in Germany. She only reacted when the rigid contracts brought the supply system to the brink of collapse.
Top jobs of the day
Find the best jobs now and
be notified by email.
Sometimes protecting consumers from the extreme ups and downs in the markets is the right thing to do. But the delays in the German system are too extreme, that’s clear now. Not only do the gas contracts run for long periods, but many tenants only see price changes when the utility bills come months later. In addition, part of the heating costs is sometimes passed on to the tenants according to the living space. This can further reduce incentives to save gas.
Heating with gas is to be phased out
It is to be hoped that prices will relax and fluctuations will also decrease once liquid gas deliveries to Germany have become established, consumption falls and dependence on Russia decreases.
But at the same time it is important to learn as much as possible from this energy crisis for the forthcoming transformation of the energy markets. Heating with gas should become an exception within the next 20 years, also stimulated by a CO2 price.
That brings with it a lot of uncertainty. It is difficult to predict what quantities will be available and how demand will change. It is important that a price is formed that customers perceive without being too exposed to short-term fluctuations. It is also important that low-income earners receive enough support to be able to afford the resulting price. The government should work on that.