Politicians and consumer centers have been warning for weeks that German gas customers are facing a lot. While Russia has drastically reduced the original gas supply volume to Germany, the federal government is pushing for alternative solutions. What is already clear is that gas bills will increase – very likely even multiply. Consumers are correspondingly unsure of what to expect in the coming months. How high are the gas levels in the country? How much does a kilowatt hour cost and how quickly can prices gallop? The most important questions and answers at a glance.
What is the current gas price?
Concluding short contracts in order to get a cheaper one soon – that was long considered a good strategy among consumers. In the case of natural gas, however, something like this was recently punished badly, because inflation rose rapidly: by August, the average prices for households had risen by around 184 percent, according to the comparison portal Verivox. While gas for a useful energy of 20,000 kilowatt hours cost 1258 euros in August 2021, in August 2022 it is already 3568 euros. Converted, a kilowatt hour of gas currently costs just under 18 cents.
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How much gas do you use per month?
The gas consumption of a household depends primarily on the living space. In Germany there are mean values that serve as a rough guide. The gas consumption can be measured both in kilowatt hours (kWh) and in cubic meters (m³). A rule of thumb says: Apartment buildings use an average of 140 kWh / 14 m³ of gas per square meter per year for heating and hot water. The average gas consumption of a single-family home is estimated at approx. Estimated 160 kWh / 16 m³ per square meter of living space per year.
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For example, this means: An 80 square meter apartment in an apartment building consumes an average of 12,800 kWh of gas per year. With a current gas price of around 18 cents, this results in a gas bill of around 2,304 euros.
Read about this: What is the average gas consumption?
How high is the filling level of the gas storage facilities in Germany?
According to data from the Federal Network Agency, the total storage capacity in Germany is currently 73.18 percent (as of August 10, 2022). The level in the Rehden storage facility, the largest in Germany, is 50.62 percent.
A new regulation stipulates that German storage facilities must be at least 75 percent full by September 1st. On October 1st it should be at least 85 percent and on November 1st at least 95 percent.
After the USA, Ukraine and Russia, Germany has the fourth largest storage capacities in the world. 23 billion cubic meters of natural gas can be stored in German storage facilities.
Will gas become cheaper again at the end of 2022? What could happen next with the gas price?
The fact is: Gas prices have been rising continuously since autumn 2021 due to high demand and lower supply – and the end of the increase has probably not yet been reached. According to Verivox, 52 local gas suppliers announced price increases of an average of 50 percent for August and September. “Should gas supplies continue to be curtailed or even cease altogether, a tripling is even realistic,” it said.
Electricity would then be even more expensive. Check24 speaks of a total of 98 known cases with gas tariff increases of over 51 and 57 percent for the next two months – around one million households are affected. What is certain, therefore, is that a further shortage should also drive up energy prices. The extent depends on the actual delivery restrictions. An easing of the situation is not in sight. The President of the Federal Network Agency, Klaus Müller, also warned that gas prices for consumers could triple again from 2023.
Cologne-based energy supplier Rheinenergie has already announced that natural gas prices for the company’s customers have risen by more than 116 percent. “We have additional expenses of over 700 million euros on the gas purchasing side,” Rheinenergie Sales Director Achim Südmeier justifies the decision in the podcast Handelsblatt Green. One is now forced to pass this on to its customers, the situation is “very tense”.
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Why is gas becoming so expensive for consumers?
In view of the Ukraine war, the international wholesale trade in raw materials has developed dramatically. Germany currently only gets 20 percent of the agreed volume via the Nord Stream 1 pipeline. Non-Russian gas, which countries and corporations can still procure in the short term, is often only available at significant surcharges. Many bulk buyers then have to pass on the increased prices to the suppliers and then to the end customers. More than 20 million households in Germany heat with gas.
In addition to this, a gas surcharge will ensure higher costs from October 1st. The federal government wants to help gas importers like Uniper in view of the high costs. Despite existing contracts with industry and households, gas traders can pass on the majority of their additional costs by law. It is planned that importers will be able to pass on 90 percent of the higher procurement costs to companies and consumers via the levy. The price range should be between 1.5 and 5.0 cents per kilowatt hour.
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Am I covered with a long-term, fairly cheap gas contract?
no Consumers who have long-term contracts also have to be prepared for extra costs. The price increase is currently being slowed down somewhat because gas importers such as Uniper are not allowed to pass on the additional charges to their existing customers. That changes with the gas surcharge.
What would be the consequences for the storage facilities and the gas supply in winter if Putin turned off the gas tap completely?
That cannot be estimated precisely. However, one thing is certain: If no gas at all flows through Nord Stream 1 and other routes, the gas shortage would worsen again, also with a view to the cold season. Even before the start of the Russian war of aggression against Ukraine, the memory levels were lower than in previous years. The federal government had rejected a gas embargo in the spring.
However, a new edition of the much-cited Bachmann study shows that if the Federal Republic succeeds in saving a further 25 percent between now and April 2023 compared to previous years – that corresponds to 210 terawatt hours – Germany could survive the winter without Russian gas. The authors of the study see the savings potential primarily in power generation and in households, for example a reduction in room temperatures by up to 2.5 degrees Celsius is being discussed.
Read about this: New study – Germany can survive winter without Russian gas – if 210 terawatt hours are saved
What are the supply alternatives to Russian gas?
Other important gas sources for the Federal Republic are Norway with a good 20 percent and the Netherlands with around 11 percent. Tempo is now also coming into the topic of LNG. So far, Germany has mainly obtained the liquefied natural gas, which is deep-frozen under high pressure and transported by ship, from the USA. The first import terminals should now start around the turn of the year in Wilhelmshaven and Brunsbüttel, with further landing sites to follow. Promoting Germany’s own gas can at best cover five percent of domestic consumption. But there are plans to tap into a new field in the North Sea.
How can I save gas as a consumer?
Ramona Pop from the Federal Association of Consumer Centers reports that “increasing numbers of people with worries, existential needs and desperation” are coming for advice. “Shock-like price increases” must be prevented, real relief is necessary, she said in the direction of the federal government. Consumers should now “save energy, save, save and – if financially possible – build reserves for additional payments as a precaution”. This is sometimes achieved through reduced heating and colder and shorter shower times. In addition, buying economical shower heads could help. If consumers reduce their electricity consumption at the same time, they indirectly contribute to the fact that less gas has to be used to generate electricity in gas-fired power plants.
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With agency material.
First published: Jul 20, 2022 at 3:36 pm