In view of the high burdens caused by the energy crisis and inflation, the municipal utilities in Germany are preparing for a sharp increase in the number of defaults on the part of customers.

“Until now, payment defaults have been less than one percent.

Many municipal utilities are now pricing in losses of up to eight percent.

But there are also municipal utilities that calculate bad debt losses of up to 15 percent.

That then becomes threatening," said Ingbert Liebing, general manager of the Association of Municipal Enterprises (VKU), to the newspapers of the Funke media group.

Liebing calls for a moratorium on insolvency applications for energy suppliers.

In addition, relief is still needed in the fall.

In concrete terms, Liebing proposes reducing the value added tax not only for gas, but also for electricity and heat to seven or five percent and reducing the electricity tax to the permissible minimum.

In addition, those who are just above the transfer reference must be specifically helped.

“The proven instruments such as housing benefit and heating subsidies must be used.

The income limits should be increased in order to expand the group of recipients.”

The Stadtwerke expect significant price increases for consumers.

“Price increases are currently often between 30 and 60 percent.

But there are also municipal utilities that have to more than double their prices.

Sometimes more,” said Liebing.

“Price increases are to be expected in the coming year as well, since the municipal utilities procure gas over the long term.” Gas is currently still being used that was bought a year or two ago at more favorable conditions.

“And if we look at the stock market, we come from under 20 euros per megawatt hour at the beginning of last year and are now more than 300 euros per megawatt hour.

In the medium term, such prices are reflected in pricing for end customers.” Future price increases would also depend on whether there would be further interruptions in the supply of Russian energy.