German EnBW raises gas prices by more than a third in response to the Ukraine war

Prices for the basic supply of gas would rise by 34.8%, or 2.92 euro cents per kilowatt hour (kWh), beginning July 1, 2022, according to the business.

“The expenses will increase by around 48.58 euros ($51.06) per month for a representative family with an annual usage of 20,000 kWh,” EnBW, whose VNG (VNG.UL) unit is one of Germany’s importers of Russian gas, said.

A stop in Russian gas supplies to Germany would cause a deep recession and result in the loss of half a million jobs, according to a senior economist in an interview published on Tuesday (May 10), as Europe’s largest economy attempts to reduce Russian energy imports.

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Professor Achim Truger, a member of Germany’s Council of Economic Experts, believes that if Russian President Vladimir Putin decides to reduce gas exports to Germany, German industry will suffer severely in the long run.

“According to most estimates, the cessation of Russian gas supply would cause a severe recession. A half-million jobs may be destroyed.” – Prof Truger was reported in the daily newspaper Rheinische Post as stating.

Last month, Russia’s Gazprom cut off Poland and Bulgaria from its gas supply after they refused to pay in roubles, and threatened to do the same to others, prompting fears that it might do the same to Germany.

Last year, Russian gas accounted for 55% of Germany’s imports, and Berlin is under pressure to end a business connection that opponents claim is funding Russia’s war in Ukraine.

Prof Truger also predicted that falling inflation in Germany would take a long time.

“Excessive inflation will persist well beyond 2023,” he said.