In the slipstream of the high gas tariffs, German electricity prices have also climbed to a record level.

At the beginning of the week, wholesalers demanded 710 euros in the one-year futures contract for one megawatt hour (MWh) of electricity base load.

665 euros were then fixed on Monday.

That was 16 percent more than the previous day and almost 40 percent more than a week earlier.

On Tuesday, too, the electricity price was more than 650 euros.

More than 500 euros were paid for the first time last Wednesday and more than 400 euros at the beginning of the month.

Christian Geinitz

Business correspondent in Berlin

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Markus Fruehauf

Editor in Business.

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The price of electricity is reacting to the general uncertainties on the energy market, above all to the expensive procurement of replacement coal, oil and gas since the EU imposed sanctions on Russia and since the country has been supplying less of its own accord.

About half of German electricity comes from non-renewable sources, of which (Russian) hard coal and gas traditionally play a leading role.

It is true that one would like to reduce gas-fired power generation in order to use the scarce fuel and raw material where it cannot be replaced, for example in the chemical and steel industries.

The low water also drives up the price

At the moment, however, this is only possible half-heartedly, since parts of French nuclear energy are not available and Germany therefore has to step in for the neighboring country within the European electricity network: also by generating electricity from the valuable gas.

Electricity production also suffers from the low water levels of large rivers on which coal is transported.

The certificates for greenhouse gases have also become more expensive, and there is also strong international demand for energy, especially from Asia.

The connection between the price of electricity and the uncertain gas supply is obvious, especially with the announcements from Moscow and St. Petersburg that less natural gas will be supplied.

Most recently, the news came from there that the main pipeline to Germany, Nord Stream 1, would be shut down for three days at the end of August, allegedly for maintenance work.

The federal government and apparently also the market fear that the flows will not be resumed afterwards or will be greatly reduced.

These concerns are justified, as Russia has already restricted the transit twice with flimsy justifications.

Each time thereafter, both gas and electricity prices have skyrocketed.

Since the Kremlin first announced in mid-June that only 40 percent of gas capacity would be available, the wholesale price for electricity has tripled.

Since a further restriction to just 20 percent exactly one month ago, there has been a doubling.

Ultimately, of course, the soaring prices have to do with Russia's attack on Ukraine and the sanctions and counter-sanctions: Before the invasion on February 24, the one-year future on electricity cost less than 160 euros per MWh, since then the price quadrupled.

The European stock exchanges are currently being dominated by the inexorably rising gas prices and the associated fear of even higher living costs, commented Carsten Mumm, chief economist at Donner & Reuschel Privatbank.

Kenneth Broux, currency strategist at the major French bank Société Générale, sees the rise in gas prices as “bad news all round”.

The fear of bottlenecks had pushed the gas price up further at the start of the week.

14 times higher than the ten-year average price

The European futures hit a record €292.50 per MWh on Monday and traded slightly lower at €275.60 on Tuesday.

Average gas prices in the European Union have doubled in just one month and are now 14 times higher than the average for the last ten years.

The higher gas and electricity prices are increasing recession worries in Europe.

Electricity tariffs were also volatile before the start of the war and in some cases had already risen sharply at the time.

A year ago, at the end of August 2021, times were quite relaxed, when around 80 euros per MWh of electricity were due.

At least 100 euros were then paid from autumn onwards.

In December, the sound barriers of 200 and 300 euros fell, but the market calmed down again at the beginning of the year to less than 150 euros - until the fateful Russian military attack.

The future prices reflect the expectations in the market, which continues to be pessimistic.

But the current end consumer prices are also rising sharply.

And this despite the fact that the EEG surcharge was abolished prematurely in order to relieve households.

The comparison portal Verivox found an average price of just under 42 cents per kilowatt hour (420 euros per MWh) for August for a model household with 4000 kilowatt hours of electricity consumption per year, 38 percent more than a month earlier.

The Check24 portal counted almost 190 cases among basic suppliers who want to raise prices in September, October or November for a good 3.6 million households.

The increases planned for September amount to an average of 47 percent.

According to Check24, price increases have been announced in more than 900 cases since March, the month after the Russian war began.

The 8.9 million households would have to pay an average of 21 percent more than before.

For a model household, this means an additional burden of 353 euros per year.

Electricity prices are lower in rural areas than in cities.

On average, a model household in an urban area pays 20 euros or 1.2 percent more than in the area, writes Check24.

The difference is greatest in Saarland at 144 euros or 9 percent, ahead of Saxony, Baden-Württemberg and Brandenburg.

In Thuringia and Mecklenburg-Western Pomerania, on the other hand, the municipal supply is cheaper by up to 168 euros a year.