E.ON CEO Warns Power Prices Will Not Ease in Coming Months

BERLIN (Reuters) — E.ON CEO Leonhard Birnbaum does not expect high power prices to ease soon, he warned in an interview with German paper Sueddeutsche Zeitung on Monday, adding prices would rise further if gas did not flow through the Nord Stream 2 pipeline.

"There won't be a quick easing, this will not be over within three months," Birnbaum said, adding the market was nervous because gas storage facilities were not full.

European natural gas prices jumped more than 8% on Monday, nearing an all-time high, with Russian deliveries to Germany through the Yamal-Europe pipeline at very low levels.

"If the macropolitical situation worsens, for example in the Ukraine, prices could continue to rise considerably," Birnbaum said, adding that prices would rise further if gas did not start flowing through Nord Stream 2.

Russia completed construction of the dual pipeline in September, but it is yet to obtain regulatory approval from Germany and the European Union amid political tensions over a buildup of Russian troops on the Ukraine border.

Germany's energy regulator has said a decision will not come before the second half of 2022.

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