What experts have been predicting for weeks and months is now also materialising in Giessen and the region: Natural gas is becoming massively more expensive. Stadtwerke Gießen (SWG) is having to adjust its prices upwards for the second time this year. "It doesn't make things any better, but unfortunately this development was foreseeable," comments Jens Schmidt, Commercial Director of SWG. The armed conflict in Ukraine in particular has dramatically exacerbated the already difficult situation in energy procurement. The already high market prices for natural gas have more than doubled since 1 January.
SWG cannot compensate for such an increase in prices on the procurement side. They therefore have no choice but to increase their natural gas prices in the basic supply by 3.87 cents per kilowatt hour. With an annual consumption of 25,000 kilowatt hours, this corresponds to an increase of around 46 per cent. A household with this level of consumption will therefore incur additional costs of around 80.63 euros per month.
The price development is even more dramatic for customers who have opted for the Thermo Fix product, which has always been cheaper. SWG has so far been able to realise the price advantage of this tariff by purchasing the entire supply for one year in advance. However, due to the unchecked rise in energy prices, this strategy no longer works. "Compared to the procurement conditions a year ago, the stock market prices have quadrupled," calculates Andreas Fuchs, Head of Sales at SWG. This price explosion is forcing SWG to take action: In the Thermo Fix tariff, a kilowatt hour of natural gas will cost 7.49 cents more than before from July. For the comparable household mentioned above, this means an increase of around 110 per cent. "Just a year ago, we would have considered price increases of this magnitude to be simply impossible," Jens Schmidt points out. "But now we have to accept the fact that energy will no longer be as cheap as we were used to until mid-2021 for the foreseeable future."
Price security at a higher level
Customers who remain on the Thermo Fix tariff will pay an average of around €156 more per month than before. Despite this massive increase, the new price offers a real opportunity: "Although the contract no longer provides for a price guarantee after the end of the one-year term, we are leaving the current conditions unchanged until 30 June 2023 and thus giving our customers price security," announces Andreas Fuchs. However, this promise is subject to the proviso that no completely unforeseeable scenarios occur on the natural gas market, that the situation does not deteriorate further as a result and that there are no changes to state levies and taxes. On the other hand, SWG will have to reassess what happens to the basic supply by 1 January 2023 at the latest - and if things go badly, as early as 1 October 2022. "Unfortunately, there is currently no sign of the situation easing," Jens Schmidt points out.
Due to this still unclear market situation, those responsible at SWG consider the Thermo Fix tariff to be a very attractive offer. After all, it offers a certain degree of security. "Our Thermo Fix is currently an exclusive offer - only for customers who opted for it a year ago. New contracts are currently not possible," adds Andreas Fuchs. Existing customers can therefore choose between renewing their contract at the current conditions or switching to the initially cheaper basic supply.
To avoid nasty surprises and high additional payments in the annual bill, SWG will automatically adjust the monthly instalments for all customers supplied with natural gas. SWG will of course inform all those affected in writing.
Seek advice now
"Although we have no influence on what is currently happening on the energy market, we support our customers in saving energy and thus influencing the amount of their bill," assures Jens Schmidt. This includes, for example, SWG's comprehensive energy advice service. "I can only recommend taking advantage of this free and helpful service," adds Andreas Fuchs. In fact, almost every household has a certain potential for savings. The experts at the SWG energy advice service can help you tap into this potential - in a face-to-face meeting at the SWG customer centre on Marktplatz, via video conference or over the phone. Register at www.energiessen.de/online-terminvergabe
Electricity is getting cheaper
In addition to this admittedly depressing news, there is another piece of good news: as announced, the EEG levy will be abolished from 1 July 2022. This means that all SWG electricity tariffs for household customers will be 4.43 cents per kilowatt hour cheaper on this date. An average household with an annual electricity consumption of 3,000 kilowatt hours will therefore save around 130 euros per year. The reduction in electricity prices due to the abolition of the EEG levy on 1 July 2022 will be automatic. SWG will refrain from informing its customers individually and in writing.