Berlin’s main natural gas supplier, Gasag, will raise tariffs for consumers by 26% from May 1, 2022, the company said in a statement. Gasag supplies gas to around 400,000 private homes in Berlin and supplies electricity to over 200,000 people.
With an annual consumption of 12,000 kWh in an average apartment, the monthly gas bill would rise by 24.50 euros to 119 euros, Gasag said. The basis for the decision is the dynamics of spot gas prices in Europe.
During the auction on March 7, the cost of gas exceeded $3,000 per 1,000 cubic meters. m, thus updating the historical record. The April futures price at the TTF hub rose to $3,900 per 1,000 cubic meters. m. On March 10, during trading, gas futures fell significantly and at 14:37 Moscow time they were trading at around $ 1,600 per 1,000 cubic meters. m., according to the London Stock Exchange ICE.
In addition, Gasag has temporarily suspended new fixed-rate electricity and gas contracts with customers.
Wholesale gas prices have increased by 500% compared to March 2021, according to the German publication Der Tagesspiegel. Germany receives most of its natural gas from Russia. Prices have been rising for months, the largest increase was recorded after the start of Russia’s special operation in Ukraine. The German Federal Energy and Water Association notes “tremendous pressure” on wholesale prices for electricity and gas due to the situation in Ukraine.