ADVERTISEMENT

E.ON planning German gas price hikes due oil – report

Energy Trade

German gas consumers may face price increases of up to 25% in the wake of adjustments to be made by market leader E.ON Ruhrgas due to record oil prices, the weekly magazine Der Spiegel reported on Monday.

E.ON Ruhrgas, the E.ON utility’s German wholesale gas arm, declined to comment on the report, which cited unnamed internal company sources as giving this figure and suggesting a two-step price hike. A spokesman for E.ON said that his company’s gas procurement costs were rising due to recent rallies in the oil market, to which gas is index-linked.

The magazine also said that other companies in the 1,000 terawatt hours/year market were likely to follow suit. A household currently paying €1,600 a year for its gas may then be faced with a bill of €2,000, it said. Germany imports 80% of the gas it consumes and prices follow those of oil with a certain lag under long-term supply contracts.

Oil has risen to over $135 a barrel spurred on by a weaker US dollar, failure by producer group OPEC to raise output significantly, and concerns that output outside OPEC may also not keep up with demand, which could lead to supply squeezes. E.ON Ruhrgas sells three quarters of its gas to long distance shippers and local utilities and the rest to power stations and customers abroad. Economists and politicians cited by the magazine said there was rising concern about the impact of high energy prices on spending power and general economic growth. (Reuters)

ADVERTISEMENT

IMF raises Hungary 2021 GDP growth forecast to 7.6% Analysis

IMF raises Hungary 2021 GDP growth forecast to 7.6%

Parliament approves amendment to Competition Act Parliament

Parliament approves amendment to Competition Act

New CEO announced at Codic Hungary Appointments

New CEO announced at Codic Hungary

Budapest bike-sharing scheme boasts record ridership City

Budapest bike-sharing scheme boasts record ridership

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.