OREANDA-NEWS Germany’s energy giant EnBW AG announced on Tuesday that gas prices for households will rise by an average 38%, starting December 1. The company attributed the hike to higher costs on the wholesale markets.

According to the company, the prices will average at €13.54 per kilowatt hour (kWh). The bill for a typical four-person household will grow by an additional €768 ($745) per year.

The announcement comes around three months after the previous increase became effective.

“As a result of the war of aggression on Ukraine, the energy markets have been experiencing unprecedented price increases and permanently high price levels in recent months,” EnBW stated.

The firm elaborated, explaining that gas prices on the wholesale markets, which averaged around two cents per kWh in previous years, have increased fivefold to about 11 cents per kWh so far in 2022.

EnBW also told Spiegel magazine that even after the announced hike, gas prices will still be below the market average. At the same time, the power supplier expressed readiness to consider proposals from the government aimed at mitigating the increase in energy prices.

Leading German economists have recently warned that skyrocketing gas prices could push the EU’s largest economy into recession. They forecast that Germany will be among the countries worst affected by the global economic slowdown next year. According to statistics office Destatis, annual inflation in Germany accelerated to 8.8% in August, the highest level in nearly 50 years. The country’s central bank, the Bundesbank, also warned last month that a recession in Germany was “increasingly likely,” but did not provide any numbers.