Last night, I sat and watched ZDF's (Channel Two, German public TV) Frontal-21 show.....a news documentary show. One of the topics covered....escalation of energy prices to the extent...that German companies can't function. I'd recommend a review of the piece (about 8 minutes long, all in German though).
Some key points?
1. If you use the industrial cost for electricity from Feb 2021, to today....296-percent (now at 228 Euro per MWh).
2. If you use the industrial cost for natural gas from Feb 2021, to today.....75-percent increase (now at 4.83 MMBtu).
3. If you use the industrial cost for oil/gas from Feb 2021, to today....68-percent increase.
In simple terms....it's putting companies (small, medium and large) in a very difficult position to survive.
Government reaction? Limited in nature. I don't think they are grasping company failures equaling higher unemployment, and lesser tax revenue being in the game going forward.
Toward the end of the segment, they brought on a fairly smart German retiree, who is on a limited pension check. Heating costs are now a problem and he's pretty blunt about the house now being cooler than normal because he can't afford 'normal' heating numbers. At some point, he lights up three tea-kettle type 'candles' to heat a reflective-heat device for the room. It was actually cheaper to use the candles to increase the room heat....than to turn the knob and improve the natural gas heat coming from the basement.
A big mess? My question by the end....if I know the Feb 2022 energy prices....just how bad will it be by Feb 2023? Is there another 200-percent increase in natural gas prices coming, and if so.....can the normal German pay for heat in that situation?
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