German energy giant E.ON expects electricity and gas prices to continue climbing over the long term as a result of ongoing tensions in the Middle East, according to senior company officials.

Filip Thon, CEO of E.ON Energie Deutschland — a subsidiary of the group — said in remarks that pre-escalation price levels will not return as swiftly as some might hope, reported ONA.

Energy prices on wholesale exchanges, he noted, will remain elevated above pre-crisis benchmarks for an extended period, pointing to a significant jump in energy procurement costs.

Thon highlighted that prices have already risen this year by 75 per cent for gas and 35 perc ent for electricity on a temporary basis.

 Wholesale energy contracts for next year have surged by approximately 60 percent for gas and 20 percent for electricity.

While short-term fluctuations cannot be passed directly onto end-user tariffs, Thon stressed that the overarching price trajectory is firmly upward.

E.ON is Germany’s largest energy supplier, holding around 12 million electricity supply contracts and 2 million gas supply agreements.

Through its subsidiaries, it also operates the country’s largest electricity distribution network, accounting for nearly one-third of total network length.