Germany to hike electricity prices

FRANKFURT – The biggest German power company, EON, will raise electricity and gas prices sharply next year, it said yesterday, a move likely to fuel inflation in the biggest eurozone economy.

From January 1, the cost of electricity for individuals is to increase by 7,1 – 9,9 per cent according to the region, adding between 4,30 and 5,8 euros per month to their bills, a statement said. Gas prices would rise by 3,4 – 8,8 per cent, EON added.The hikes “are explained by increased production prices and taxes on renewable energies,” the statement quoted Karl-Michael Fuhr, head of its EON Energie division as saying.The announcement comes as German inflation climbs above the European Central Bank’s medium term target of two per cent, mainly owing to higher prices for energy and agricultural products.Nampa-AFPGas prices would rise by 3,4 – 8,8 per cent, EON added.The hikes “are explained by increased production prices and taxes on renewable energies,” the statement quoted Karl-Michael Fuhr, head of its EON Energie division as saying.The announcement comes as German inflation climbs above the European Central Bank’s medium term target of two per cent, mainly owing to higher prices for energy and agricultural products.Nampa-AFP