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ANGELA MERKEL

Merkel says no regrets over Germany’s Russia gas deals

Former chancellor Angela Merkel said Thursday she did not regret taking on Russia as a major gas supplier for Germany during her 16 years in office.

Former German chancellor Angela Merkel (CDU)
Former German chancellor Angela Merkel (CDU) speaks at an event in Munich. Photo: picture alliance/dpa | Sven Hoppe

Germany’s reliance on Russian energy has been exposed as an Achilles’ heel for Berlin in the wake of Moscow’s invasion of Ukraine.

But when she was chancellor of Europe’s biggest economy, Merkel said Germany needed to ramp up its gas imports to fill an energy gap as it wound down its use of nuclear energy.

“It was also very rational and comprehensible to procure gas via pipelines from Russia, which was cheaper than LNG (liquefied natural gas) from elsewhere in the world like the US, Saudi Arabia or Qatar,” she told journalists in Lisbon.

“Even during the Cold War, Russia was a reliable energy supplier,” noted Merkel, who grew up behind the Iron Curtain in communist East Germany.

“And in that respect, I don’t regret my decisions at all. Rather, I believe that it was correct from the perspective at that time.”

She also rejected speculation that her willingness to do deals with President Vladimir Putin was a bid to change Russia using trade.

“I never believed that there’s such a thing as change through trade, but there was definitely a connection through trade,” she said.

READ ALSO: Former German chancellor Angela Merkel wins UN refugee prize

‘Respect’ for Zelensky

Merkel was in the Portuguese capital to serve as president of the jury of the Gulbenkian Prize for Humanity.

Russia’s “brutal assault” of Ukraine necessitated a change in how Germany handled Moscow, Merkel added — and “the new government is doing that”.

Germany’s former chancellor left the political stage in December 2021 after four consecutive terms in Germany’s top job as a highly respected world leader.

Barely two months later, her legacy was tarnished by Russia’s war in Ukraine.

She and her coalition of conservatives and Social Democrats have in particular come under fire over the energy deals that left Germany dependent on Russia for 55 percent of its gas supplies.

Her backing for the controversial Nord Stream 2 pipeline that was to double Russian gas deliveries to Germany had also long irked allies.

The project was shelved by current Chancellor Olaf Scholz in late February over Russia’s aggression.

Merkel has made only a handful of public appearances since retiring from politics, but she has sharply condemned Putin’s war.

She has also said she has the “highest respect” for Ukrainian President Volodymyr Zelensky.

READ ALSO: Former German chancellor Angela Merkel to release memoir

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PRACTICAL TIPS

How German households can save on their electricity bills

Customers can save a high three-digit sum on their household electricity costs, according to calculations done by German price comparison portals. Here's why you may want to switch your tariff.

How German households can save on their electricity bills

German households are overpaying for electricity by billions of euros each year, according to calculations carried out on the Verivox price comparison portal.

This is because nearly a quarter of households in Germany purchase electricity via the most expensive tariff group from their local supplier – the so-called ‘basic supply’, or Grundversorgung in German.

But in Germany, customers have energy tariff options, and saving hundreds on your energy bill can sometimes be as simple as checking your current tariff online and switching to a cheaper one in a matter of minutes.

Based on approximately ten million households consuming electricity from the basic supply, Verivox calculates that Germans are overpaying by about €5.5 billion annually. That’s because the average difference between basic supply rates and the cheapest local energy rates currently amounts to 20 cents per kilowatt hour (kWh).

What is the ‘basic supply’ for household energy?

Household electricity in Germany is purchased through different tariffs (Stromtarifs). Through these various tariffs, local energy companies offer different prices for electricity, depending on customer contracts.

The basic supply tariff for electricity can be thought of as the default. When a new house is connected to the energy grid, for example, its electricity will be provided via the basic supply unless the homeowner chooses another tariff option.

READ ALSO: How to change electricity and gas providers in Germany

The basic supply is intended to ensure that everyone has access to electricity, even if they haven’t shopped around for an energy provider on their own. It can also be advantageous in the short term because it can be cancelled at any time, as opposed to other tariffs which typically come with longer contracts.

But the basic supply is comparatively expensive. According to Verivox, basic supply electricity currently goes for an average of 44.36 cents per kilowatt hour (kWh), whereas the cheapest available rates on average come to 24.7 cents/kWh across Germany.

How much can you save?

At current rates, you can expect to save about 44 percent on your electricity bill if you switch from basic supply to the cheapest option with a price guarantee. 

That amounts to significant savings, considering that annual electricity costs regularly come to a few thousand euros in German households.

The Hamburger Abendblatt reported that a three-person household consuming 4,000 kWh would save an average of €786.

These prices will vary from provider to provider and from region to region. 

Keep in mind that choosing other tariff options often comes with some additional fees. Still, in many cases taking a look at different electricity tariff options can save households some money.

Also, switching tariffs is different from switching your energy provider. If you currently get basic supply electricity from Vattenfall, for example, you could potentially switch to a different tariff option while maintaining your business with them. But if you are between contracts, or currently on basic supply, you could also consider switching providers.

In this case, a comparison portal like Check24 can be useful to get an idea of which companies offer the best rates.

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