Seven electric utilities in Germany have been forced out of business by surging gas prices since October as suppliers rush to secure supplies for the winter season, media reported Friday
BERLIN (Pakistan Point News / Sputnik - 24th December, 2021) Seven electric utilities in Germany have been forced out of business by surging gas prices since October as suppliers rush to secure supplies for the winter season, media reported Friday.
Electricity discounter Stromio said this week it would stop delivering on the contracts from Wednesday due to "historic price developments in the energy market," although it stopped short of declaring insolvency.
The German magazine Focus said six other electric utilities went bankrupt in the past three months, leaving tens of thousands of private clients in the lurch. The number of energy utilities that have stopped supplying clients with electricity, gas or both this year is nearing 40.
German energy suppliers used to shop around in the gas spot markets but stopped once prices became forbiddingly high, according to the weekly. Long-term contracts did not allow them to pass on additional costs to clients.
