The co-leader of Germany’s Left Party, Ines Schwerdtner, is calling for the reintroduction of state price controls on electricity and gas, citing excessively high costs for consumers. The demand comes in response to data from comparison portal Verivox, which analyzed a recent report from the Federal Network Agency, indicating that approximately one in four electricity customers and one in five gas customers in Germany are currently in the more expensive basic supply tier.
Schwerdtner argues that many households are facing financial strain while energy providers maintain artificially high prices, effectively exploiting consumers. She asserts that a significant number of people remain trapped in basic supply contracts due to fear or lack of awareness. Verivox estimates that an average household could save approximately €1,628 per year by switching from a basic supply tariff.
The Left Party leader characterized the situation not as a market failure, but as a political one, demanding immediate price monitoring to halt what she describes as unsustainable cost increases. She advocates treating electricity as a fundamental necessity, rather than a speculative commodity and calls for basic supply providers to offer more competitive pricing. Schwerdtner also proposes extending reductions in electricity tax beyond the industrial sector to benefit all consumers.
The Left Party is urging the federal government to take action, proposing a system where energy providers must justify high prices to regulators, shifting the burden of proof from consumers. She suggests implementing a pre-approval process for price increases, similar to a system briefly utilized in 2023, overseen by the federal and state economic ministries.
