The co-leader of Germany’s Left Party, Ines Schwerdtner, is calling for state-controlled price regulations on electricity and gas amidst rising energy costs for consumers. The demand follows an analysis by price comparison portal Verivox, linked to the latest monitoring report from the Federal Network Agency, which indicates that approximately one in four electricity customers and one in five gas customers in Germany are currently in the more expensive basic supply tier.
Schwerdtner argues that many households are facing financial strain while energy suppliers are artificially maintaining high prices, essentially exploiting consumers. She maintains a significant number of people remain locked in basic supply contracts due to fear or lack of knowledge, creating a system that disadvantages citizens while benefiting corporations.
Verivox estimates that an average single-family household consuming 4,000 kilowatt-hours of electricity and 20,000 kilowatt-hours of gas annually could save an average of 1,628 euros per year by switching from the basic supply tariff. Schwerdtner characterizes this situation not as a market failure, but as a political one.
She proposes immediate price monitoring to curb escalating costs, framing electricity and gas as essential services rather than speculative commodities. She advocates for basic supply providers to offer more competitive pricing and for reductions in electricity tax to extend beyond industrial consumers.
The Left Party is urging the federal government to take action, specifically through the reintroduction of state price controls on electricity and gas. She argues that given current inflationary pressures and the rising cost of living, corporations should not be permitted to continuously increase prices unchecked. Schwerdtner also proposes shifting the burden of proof – requiring energy suppliers to justify high prices rather than consumers needing to demonstrate irregularities. She suggests oversight of energy prices be placed within the remit of federal and state economic ministries, advocating for a system where price increases require prior review and approval, as was briefly implemented in 2023.