German Energy Firm E.ON Suspends New Natural Gas Contracts

Supply to customers with existing contracts would continue as normal, the spokesperson said.

SEATTLE (Oil Monster): German energy firm E.ON (EONGn.DE) has temporarily suspended new natural gas supply contracts for residential customers, the company said on Tuesday, as suppliers across Europe struggle with a steep post-lockdown rise in demand.

'We have been reviewing new customer contracts for a few days, as we must take the sharp rise in procurement costs into account in our pricing,' a company spokesperson said, without specifying how long the suspension would last.

Supply to customers with existing contracts would continue as normal, the spokesperson said.

E.ON is the first major German energy supplier to make such a move though other smaller providers have already done so, with two abruptly ending the electricity contracts of several hundred customers last week.

Gas prices in Germany have surged in recent months in line with the rest of Europe, but the country has not yet seen energy providers collapse as has happened in Britain.

Courtesy: www.reuters.com