Heating could become even more expensive: Verivox predicts far-reaching gas price increases

The German gas storage facilities are comparatively empty, but according to Verivox there is no threat of a supply bottleneck for the time being. But costs for consumers could continue to rise. He is therefore calling on the federal government to do more to combat rising energy prices.

The winter could be even more expensive for gas customers: After the already significant price increase, consumers have to be prepared for further surcharges, according to the comparison portal Verivox. “We expect further price increases across the board, including for existing customers,” Verivox boss Daniel Puschmann told the newspapers of the Funke media group. Gas currently costs almost 20 percent more than last year, around 13 cents per kilowatt hour.

Consumers should therefore check their existing contracts and compare offers in the event of a price increase, explained Puschmann. If you still have a price guarantee, you don't necessarily have to take action.

Prices have also recently risen significantly on the wholesale markets. They are now around 200 percent above the previous year's level, explained Puschmann. In February a megawatt hour cost 32 euros, but now it costs 96 euros. “This will also be reflected in the budget contracts over time.” However, it is difficult to predict how much gas prices could rise. Utilities purchased differently and pursued different strategies.

Competition for scarce gas reserves

The Verivox boss emphasized that there is no threat of an immediate bottleneck in gas supply despite the comparatively empty storage facilities. “The situation is different than in 2022,” said Puschmann. Because of supply disruptions, particularly in the Middle East, Europe is competing with other buyers such as Japan for scarcer resources. "In my view, this is primarily a question of price and not the question of whether gas will still be available at all." The decisive factor will therefore be how expensive heating will be.

Anyone concluding a new contract should pay attention not only to the price but also to the term. With newer contracts, after the minimum term has expired, there is usually only a monthly cancellation option. Older contracts, on the other hand, could automatically be extended by twelve or even 24 months. Consumers should therefore cancel in good time so that they are no longer tied to higher prices.

Puschmann called on the federal government to pay more attention to the rising costs of electricity and gas. Politicians are currently focusing heavily on refueling. "The fuel prices are immediately visible, while the higher gas prices only reach households with a delay." It is foreseeable that electricity and gas will continue to place a heavy burden on consumers. One possibility for relief is to reduce the electricity tax to the European minimum level. That would bring a household with an annual consumption of 4,000 kilowatt hours around 90 euros, and a couple with 2,500 kilowatt hours around 60 euros.