How Europeans are responding to exorbitant gas and power bills
Categories: FOREIGN COUNTRIES
A German retiree facing sky-high energy bills is turning to a wood-burning stove. The owner of a dry cleaning business in Spain adjusted her employees’ work shifts to cut electric bills and installed solar panels. A mayor in France said he ordered a hiring freeze because rising electrical bills threaten a financial “catastrophe.”Europeans have long paid some of the world’s highest prices for energy, but no one can remember a winter like this one. Lives and livelihoods across the continent are being upended by a series of factors, including pandemic-induced supply shortages and now geopolitical tensions that are driving some energy prices up fivefold. Germany has so far not seen protests over exorbitant energy bills like those that filled streets in Spain last year, or an explosive outcry over inequality on the level of the yellow vest movement that rocked France in 2018. But Siegert, whose agency counseled more than 300 customers in January — three times its monthly average — said she wouldn’t be surprised if the anger directed at the prospect of a vaccine mandate shifted its sights to energy prices. The stove and furnace, installed before the house was connected to a gas main, allow him to turn down the dial on his radiators to just 18 degrees Celsius, or 64 Fahrenheit, essentially cutting his gas bill in half.“I still have a reserve of coal briquettes and stacks of dried wood,” he said, poking another log into the stove. “But this is only temporary. It is not a long-term solution.” Pilar Ballesteros Parra, who co-owns Ronsel, a dry cleaning business in Madrid that employs 10 people, said that her company’s electricity rates had risen about 20% from the previous year. In reaction, she has reorganized her employees’ work schedule, starting the early shift earlier and pushing the late shift further into the evening so the dry-cleaning equipment can run when rates are lowest. She is also installing solar panels on the company’s building, outside of the Spanish capital, so that Ronsel can generate at least 60% of its own energy. The government is helping her with a 35% subsidy of the $45,000 investment.“Our building faces southwest and gets a lot of sun, so that means that we should be almost self-sustainable during the coming months of spring and summer, which will be a big relief,” she said. In Germany, there is rising tension in municipally owned utilities that must accept customers, like Backhaus in Saxony, whose relatively low-cost contracts have been dropped by private energy companies because the companies can’t pay ballooning energy rates. “Anyone who wants to will be supplied with energy by the municipal utilities,” said Markus Lewe, president of the German Association of Cities and Towns. “But it must not lead to the municipal utilities and their loyal customers being asked to pay for questionable business models of other providers and having to answer for their shortsighted financing.”He called on the federal government to intervene, to protect cities from the price instability. The mayor has already frozen planned hirings and said the city may have no choice but to raise the cost of public services like water, transportation, fees to use sports halls like the city’s public pool, and cultural events.“We really want to protect citizens from these increases,” Ravignon said. “But when prices reach such crazy heights, it’s impossible.”