Gas Crisis: What the Gas Emergency Means – What Consumers Should Do Now

Raw materials in this article

by Simone Gröneweg, Euro on Sunday

Dhe next winter will be different. Instead of simply turning up the heating on cold evenings, you will probably monitor the thermostat with eagle eyes. Every degree more in the apartment causes a bad conscience – at least for those who heat with gas. The political message is unmistakable: Gas is scarce. The Federal Ministry of Economics and the Federal Network Agency have developed a three-stage emergency plan to respond to the shortage. Now the alert stage – the second stage of this plan – has been declared. This means that security of supply is guaranteed, but the situation is tense.

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What are the consequences?

Now the federal government can take additional measures. This includes, for example, starting up coal-fired power plants to produce electricity. The declaration of the alert level is also a prerequisite for the price adjustment clause to be activated.

To understand: Some suppliers are currently paying more for gas than they are getting from customers. This cannot work in the long term, there is a risk of insolvency. If the adjustment clause is activated, gas suppliers can adjust their contracts almost directly and increase prices for customers even if the contract has low tariffs for a longer period of time. Before that, however, the Federal Network Agency must have noticed a “considerable reduction in the total amount of gas imported into Germany”. That hasn’t happened yet.

How expensive is gas?

The current supply situation will already ensure higher prices and become a major burden for many consumers, emphasizes Federal Minister of Economics Robert Habeck (Greens). Experts expect it to double or even triple. The graphic on the right shows how the gas price per megawatt hour on the trading exchange (TTF) has already risen. The comparison portal Check24 calculates that a model household with a consumption of 20,000 kilowatt hours (kWh) would have to pay an average of 2752 euros a year for gas in June 2022. In June 2021 it was still significantly less, namely 1290 euros.

Expect additional payments

Steffen Suttner, Managing Director Energy at Check24, warns that the high prices will only reach private gas customers with a delay. “Because when the energy suppliers procured before the crisis are used up, they will have to buy even more at the currently expensive market prices,” he says. If you heat with gas, you should control what you use and how much you pay for it. “It is essential to set aside money so that you have something when additional payments are due,” advises Reinhard Loch from the North Rhine-Westphalia consumer advice center. If you have two to three times the amount of your previous payments on the high edge, you are at least prepared.

Is it worth switching suppliers?

If someone wants to switch providers to get better conditions, it will be difficult. After all, the entire industry is affected by the price increases. However, the crisis is hitting providers who have opted for Russian gas particularly hard. You need to find alternatives that are likely to be more expensive. Some suppliers have not taken new customers for some time. The tariffs for new customers are often higher than the old inventory prices. “This is a very dynamic event,” says a spokesman for the comparison portal Verivox. Occasionally providers would stand out with slightly more favorable conditions.

If the previous provider has increased the prices significantly, you should look around for alternatives. If a price increase is announced, there is also a special right of termination.

What should be considered when changing?

Since one cannot assume that the prices will fall in the near future, a fixed-term contract with a fixed price is more worthwhile. Those who want to change should definitely take a look at the small print of the new contract. Under certain circumstances, a supplier advertises with more favorable conditions, but increases the prices after a short time.

You should also take a closer look at the provider: How long has it been on the market? Is he one of the larger providers? “If there is an insolvency, the customers will be supplied by the local supplier,” explains a spokesman for Verivox. The default supplier is the provider that supplies the most customers in a region. In many areas, this is done by the local public utilities.

Are we turning off the gas?

If things get critical and stage 3 of the emergency plan occurs, the Federal Network Agency regulates the distribution. Important to know: Private households are among the protected customers who should continue to be supplied. This also applies to social facilities, hospitals and gas-fired power plants.

Is a heating replacement worth it?

In Germany, gas heating has so far dominated. “There are around 21 million heat generators, 14 million of which are gas-based heaters,” says the spokesman for the Federal Association of the German Heating Industry. 53 percent of all heaters are outdated, i.e. on average at least 17 years old or older. If you swap your old heating system for a modern system, you can save up to 30 percent energy.

The problem: if someone wants to convert, they need a lot of money, strong nerves and, above all, time. The craft businesses push a number of orders in front of them. The average waiting time is four months. In addition: “One cannot say that this or that heating system makes sense for everyone,” explains the spokesman for the heating industry association. That is too general. Germany has a heterogeneous building stock with many older buildings. Installing a heat pump there can sometimes be difficult. The best way to find out about individual solutions is to consult an energy consultant, chimney sweep or heating engineer.

Use heating efficiently

With older heating systems, a so-called hydraulic balance can be worthwhile. The heating specialist thus ensures that the radiators are always supplied with the right amount of heating water and that the efficiency potential is fully exploited. Targeted insulation can also save a lot of energy. The best way to do this is to have an expert take a close look at the building and look for weak points. “In older houses, it’s worth insulating the heating pipes or the roller shutter boxes,” says energy expert Reinhard Loch from the consumer advice center in North Rhine-Westphalia.

Heat better, smarter

In general, everyone should heed a piece of advice that has often been given in the coming winter: Only ventilate briefly and vigorously. Of course, you should definitely save by reducing the heating temperature in your own four walls, says Loch. But he warns that there is a lower limit: “It’s 16 degrees Celsius. That’s too cool in the long run and there is a risk of mold.” Exterior walls are particularly affected.

Otherwise, it is worth adapting the heating to your own habits. Digital thermostats help with this. With them, you can control the heating better and turn down the heating in good time, for example to only use the residual heat in the evening.

Save now

Part of the electricity is generated by gas. That’s why saving electricity also helps. So it is currently better to let the laundry dry on the terrace or on the balcony, if that is possible. “The tumble dryer uses more electricity than the washing machine,” explains Loch. Another approach: to buy savings heads for the shower. That sounds quite banal at first, but it makes sense in these special times.

THE THREE STAGES OF THE GAS EMERGENCY PLAN:

Alert level: The gas supply is secure, but disrupted or demand is very strong. The Federal Network Agency can activate the price adjustment clause. Coal-fired power plants can go back online.

emergency level: The supply is not sufficient to cover the general demand. The state intervenes and ensures that private households, hospitals, fire brigades and the police in particular are supplied.

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Image sources: Robert Neumann/123RF, Chepko Danil Vitalevich / Shutterstock.com