Germany is heading for a “huge energy crisis,” a senior editor at one of the country’s most influential newspapers, Die Welt, warned on Wednesday.
“Not only [are] gas prices near record highs, but electricity prices in particular are signaling stress,” Holger Zschaepitz, a senior editor on the daily’s economic and financial desk, wrote on Twitter.
In what he called a “horror chart” that he posted with his tweet, Zschaepitz showed that the price of electricity had reached almost €400 per megawatt hour on the energy exchange, or €0.40 per kilowatt-hour.
If consumer prices reflected such market rates, Germans would be paying around €0.80 per kilowatt-hour rather than the current €0.30, including taxes and fees. However, such a sharp increase would be socially explosive, Zschaepitz suggests.
Meanwhile, in such a case energy companies would no longer be able to produce competitively, he adds.
Electricity prices in Germany are influenced by the price of natural gas, which is the source of 15% of the country’s electricity, according to official statistics.
Gas prices have nearly quadrupled this year, primarily due to shrinking flow from Russia, the continent’s major supplier.