Financial expert warns of rising electricity and gas prices due to political decisions and global events

Financial expert warns of rising electricity and gas prices due to political decisions and global events

According to a report by www.n-tv.de, Eon boss Leonard Birnbaum fears rising electricity and gas prices due to politically-related surcharges. VAT on gas will rise this year and a planned subsidy for transmission providers will no longer apply. These developments are expected to be reflected in prices for consumers. The situation in the Middle East could make the situation even worse.

Birnbaum's expectations are not unfounded given the current and planned political developments in the energy industry. The increase in VAT for gas and the abolition of the reduction in network fees charged by transmission system operators will most likely lead to rising energy prices. This in turn will burden consumers in Germany and across Europe. The politically driven surcharges will mean that all energy suppliers will have to pass on the increased costs to consumers.

There is also the possibility that the situation in the Middle East could exacerbate the price situation. Should there be an escalation, this would also affect the energy markets and drive prices further up.

The impact on the market and the financial sector could be clearly noticeable. Rising energy prices could lead to higher inflation, which in turn could prompt central banks to adjust their monetary policies. Companies that produce energy intensively also have to prepare for rising costs, which could impact their profits.

Overall, rising electricity and gas prices are expected to have a significant impact on consumers, businesses and the financial sector, as Leonard Birnbaum predicted. It remains to be seen how political and geopolitical developments will continue to impact energy prices and the market.