Given that gas storage facilities are nearly empty and price drops are not expected in the summer, the German Consumer Advice Association (VZBV) has issued a warning about a potential cost explosion for households during the upcoming autumn and winter. Ramona Pop, the head of the VZBV, told the “Neue Osnabrücker Zeitung” that nobody knows when or if the crisis will end quickly and permanently. She warned that if it does not, significantly higher prices are threatened during the next heating season, especially for natural gas. Pop described the gamble of filling storage facilities with cheap gas during the summer as “more than risky” a concern that persists even after the temporary reopening of the Strait of Hormuz. According to the consumer protection advocate, this is due to a “political failure” despite lessons learned from the Ukraine war; she stated that there could be repercussions for not having prepared adequately. Faced with possible price surges, the VZBV suggested that the government needs to implement measures to cushion rising costs for consumers. Pop suggested that “it is very possible that the government will once again have to consider a gas price cap when it gets cold and the Iran crisis continues” emphasizing the need to prevent people from losing the ability to heat their homes. In addition, she advised all consumers to check provider changes and look for more affordable new contracts before the winter hits, before it becomes too late.
Economy / Finance
