Germans face drastic price hikes if EU bans Russian gas, says E.ON Germany -RND chief

German consumers should prepare for drastic increases in electricity and gas prices if the European Union cuts off Russian gas, the managing director of E.ON Germany said on Tuesday, adding that prices were already rising rapidly even without such a decision. Speaking to German news agency RND, Filip Thon warned that the energy company was already seeing wholesale retail prices 20 times higher and electricity prices eight times higher this spring than there were. a year.

The further price increase in the event of a ban on gas from Russia depended on the extent to which Germany would increase its reserves, currently at around 25-27% of capacity, before the next cold season, Thon said. . “The situation is very tense, even without stopping deliveries,” Thon told RND, adding that the end of Russian gas imports would have “dramatic consequences for the German economy.”

The CEO called on the state to provide more financial support to private households to soften the blow, for example by reducing taxes on energy bills. After years of prosperity thanks to Russian energy imports, Germany is convulsed by a debate over how to untie a trade relationship that critics say is funding the Russian invasion of Ukraine. Russia supplies 40% of Europe’s gas needs.

German Finance Minister Christian Lindner on Monday rejected an EU embargo on Russian gas imports as rising civilian deaths in Ukraine increase pressure on the bloc to impose sanctions on Russia’s energy sector.

(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)

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