A significant rise in energy prices has led to a marked increase in the financial burden on consumers in recent months. This raises the legitimate question of whether the price rises are attributable to largely unavoidable fundamental factors, or whether there are indications of competition issues or other regulatory problems – such as those relating to consumer protection. The Monopolies Commission considers it necessary to take a nuanced view of the individual market stages within the electricity and gas sectors and the factors at play here. In the area of discount suppliers and basic supply services for domestic customers, regulatory and consumer protection issues must also be taken into account.
At a glance
- To analyse the rise in energy prices during the winter of 2021/22, a nuanced examination of the price components is required. This reveals that, whilst the price is dominated by taxes and levies, the rise in prices is driven by the wholesale market environment.
- In contrast, the political debate focuses on the retail level. However, the regulatory proposals under discussion – such as insurance models or procurement requirements – are likely to lead to rising prices.
- Greater customer protection should primarily be achieved through improved transparency requirements regarding risks. Here, for example, requirements to highlight short notice periods for the supplier would be conceivable.
