Parent company Essent warns of expensive energy in cold winter

This article was last updated on August 9, 2023

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Parent company Essent warns of expensive energy in cold winter

Despite the current lower energy prices compared to last autumn, E.ON, the German parent company of Essent and Energiedirect, is warning that prices could quickly rise again during a cold winter. According to director Leonhard Birnbaum, the energy crisis is not completely over yet.

Lower wholesale prices

During the presentation of the half-year figures of the German energy group, Birnbaum mentioned that the prices of gas and electricity on the wholesale market are much lower than they were last year. As a result, E.ON has seen its profit rise from 4.1 billion euros in the first half of 2022 to 5.7 billion euros in the first half of this year.

This decrease in energy prices is beneficial for millions of customers, who will be able to pay less for their energy. However, Birnbaum cautions both consumers and companies to be mindful of their energy consumption.

Winter concern

Despite the current favorable energy prices, Birnbaum emphasizes that the energy crisis is not completely over. He states, “Energy prices could spike again this winter if gas supplies run out faster than expected, combined with a cold winter.”

The International Energy Agency also expressed concerns in a recent report, stating that market tensions could easily increase if the winter is particularly cold. This risk is heightened if Russian gas supplies to Europe cease early in the heating season.

Prepare for potential price hikes

In light of these warnings, it is important for consumers and businesses to take proactive measures to mitigate the potential impact of rising energy prices during a cold winter. Here are some steps that can be taken:

• Energy efficiency measures: Implement energy-efficient practices and technologies to reduce overall energy consumption without sacrificing comfort or productivity.
• Proper insulation: Ensure that buildings are properly insulated to reduce heat loss and improve energy efficiency.
• Regular maintenance: Keep heating systems well-maintained to ensure optimal efficiency and minimize energy waste.
• Energy audits: Conduct energy audits to identify areas of energy wastage and implement appropriate measures.
• Alternative energy sources: Explore the use of renewable energy sources, such as solar or wind power, to reduce reliance on traditional energy sources.

Monitoring energy markets

In addition to these proactive measures, it is also important for consumers and businesses to stay informed about the energy markets and adjust their energy consumption accordingly. Keep an eye on energy market trends, such as gas supplies and weather forecasts, in order to anticipate any potential price hikes.

By taking these precautions, consumers and businesses can better manage their energy costs and mitigate the impact of any potential price increases during a cold winter.

It is advisable to start implementing energy-saving measures and monitoring the energy markets well in advance to ensure preparedness. By staying informed and proactive, it is possible to navigate through any potential energy price fluctuations and minimize the financial impact.

Ultimately, with the winter season approaching, it is important to remain vigilant and responsive to the potential challenges that may arise in the energy sector.