欧美文化:Energy prices to rise for German consumers: E.ON CEO

BERLIN, Jan. 2 (Xinhua) -- German consumers will feel the impact of higher energy prices in 2024, said the CEO of German energy supplier E.ON on Tuesday. This development is fueled by government measures to stabilize the national budget, Leonhard Birnbaum said.

That electricity and gas "may become more expensive again from 2024" after recent price reductions is "not good news for consumers," Birnbaum told the Rheinische Post newspaper.

"These are politically induced surcharges that all suppliers will have to pass on to gas and electricity customers," said Birnbaum.

Compared to before the energy crisis in 2021, wholesale electricity prices were still twice as high, at 100 euros (110 U.S. dollars) per megawatt hour. "I don't expect prices to fall back to 2021 levels," Birnbaum said.

After a decisive Constitutional Court ruling against the reallocation of COVID-19 relief funds for climate measures in November, the German government cut 5.5 billion euros in subsidies for electricity grid operators. It also raised the CO2 price for gas from 30 to 45 euros per ton.

The ruling was "fundamentally a great opportunity for politicians and society to rethink spending and priorities," said Birnbaum, adding that Germany should invest much more in the country's future. "The only way to maintain our prosperity is through innovation."

Following concerns over a gas shortage last winter, the E.ON CEO believes that Germany is "much better prepared" this time, with gas storage facilities "well filled." However, should there be an escalation in the situation in the Middle East, "that would have an impact on all energy markets," he warned. (1 euro = 1.10 U.S. dollar)