Record prices for energy are "existence problem": trade association calls for "turbo in the energy transition"

Created: 08/17/2022, 09:01

By: Andreas Hoess

Bertram Brossardt, general manager of the vbw, calls for relief for the economy.

© Tobias Hase/dpa

Energy such as natural gas, oil and electricity are increasing.

The Association of Bavarian Business calls for relief from politicians.

Munich – Bavaria's industry had to spend twice as much money on energy in the second quarter as in the same period last year.

This is shown by the energy price index of the Bavarian Business Association (vbw), which is exclusively available to our newspaper.

The energy crisis has become a long-term stress test for the economy and an "existential problem for companies", warns Bertram Brossardt, General Manager of the vbw.

There is no relaxation in sight.

According to Brossardt, the throttling of Russian gas deliveries is exacerbating the supply situation and price developments even further.

Energy price index rises to record high: Prices for gas, oil and electricity are becoming increasingly expensive

The vbw energy price index rose to a record 240.2 points in the second quarter.

Compared to the same period last year, this is an increase of 101.2 percent.

On the one hand, the index includes prices for so-called primary energy sources such as natural gas, crude oil or coal, but on the other hand it also includes costs for secondary energy such as electricity, heating oil, diesel or liquid gas.

Accordingly, there were cost explosions not only for gas, oil and fuels, but also for electricity or hard coal, for example.

In view of the high prices, the vbw is pushing for relief for the economy.

This includes temporarily suspending or at least significantly reducing the energy tax for fossil fuels.

The electricity tax must also be reduced to the minimum required under European law and national emissions trading must be suspended in order not to overwhelm the economy.

In addition, politicians should work flat out to secure the energy supply, demands vbw boss Brossardt.

According to Brossardt, in addition to an extension of the service life for nuclear power plants until at least the end of the coming heating period, a "turbo in the energy transition" is necessary.

"Only the expansion of renewable energies and the power grid strengthens independence in the energy sector and dampens electricity prices".

Record prices for energy are "existential problem"

The energy costs are already causing a high deficit in the Free State's trade balance.

Due to increased sales prices, exports from Bavaria also increased by 9.3 percent to 101.9 billion euros in the first half of the year, the State Statistical Office reported on Friday.

Imports, on the other hand, grew by a full 18 percent to 121.5 billion euros and were therefore significantly stronger.

Expensive energy imports were mainly to blame.

Bavaria spent 10.9 billion euros on them, 106 percent more than in the previous year.

The picture is similar in the federal government, although the trade balance here is still slightly positive.

In detail, however, the high energy prices are leaving their mark.

German exports to Russia fell by a little more than a third to 8.3 billion euros in the first half of the year.

Imports from Russia, on the other hand, grew by 51.3 percent to 22.6 billion euros.

Despite the sanctions, Russia received more money from energy supplies to Germany than in the first half of 2021.