Energiepreise in Bewegung

The recent sharp increase in energy prices has been caused by a combination of different developments: upheaval on the world oil market, its impact on other energy markets, increases in energy prices motivated by environmental policy, and delays in liberalisation and regulation in the area of electricity and gas supplies. In its current Weekly Report (Wochenbericht 44/2004), the DIW Berlin analyses the causes of the price increase in the individual energy sectors.

The boom in crude-oil prices was triggered by increased demand, isolated production losses and speculation on the futures markets – all against the background of already almost fully utilised production capacities . The result has been an increase not only in prices for fuels and heating oil, but also for coal and gas. The energy-price rises of recent years were also caused in part, however, by policy measures aimed at reducing emissions of greenhouse gases. German energy prices are currently relatively high in European comparison. While in the case of fuels, these differences are based almost exclusively on Germany’s higher taxes, in the electricity and gas industries they could also be related to some extent to a lack of competition. The revision of Germany’s Energy Industry Act might improve efficiency in this respect, but this will probably not suffice to compensate for the upward pressure on prices exerted by the international energy markets.