Germany recognizes ‘new normal’ — RT Business News

High energy prices will become a new reality in Germany, Finance Minister Christian Lindner warned on Sunday.

In an interview with Bild newspaper, Lindner admitted that Berlin faces the prospect of more expensive long-term energy without Russian natural gas.

“It will be a new normal. Gas passing through liquid gas terminals is more expensive than the Russian pipeline for logistical reasons only. Thus, the price level remains higher, but without ruinous peaks”, he said.

Over the past year, natural gas prices in Europe have repeatedly reached unprecedented levels, due to sanctions against Russia and pipeline supply disruptions. This led to a spike in inflation across the EU.

To protect consumers from these spikes, EU countries agreed in December to set an emergency cap on wholesale gas prices at €180 ($191) per megawatt-hour (MWh), with the measure set to come into effect. effective February 15.

However, gas prices have fallen in recent weeks, due, among other things, to an unusually warm winter in parts of Europe.

On Monday, the cost of first-month natural gas futures on the TTF hub in the Netherlands plunged to just over €73 ($78) MWh in household terms, a level not seen since last February.

Despite the current decline, however, gas prices remain several times higher than the long-term average. Over the 2017-2019 period, before the pandemic and the current energy crisis, TTF gas spot prices were trading in the 10-25 MWh range.

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