Price increases in the energy sector hit the car wash industry particularly hard, as the business is very energy-intensive. The German Zentralverband des Tankstellengewerbes (Central Association of the Petrol Station Industry) recommends reviewing the current contracts with energy suppliers. There may be significant additional costs for the coming year.

Car wash operators should check the remaining term of their energy supply contracts now. This advice is given by the ZTG. More and more members are currently contacting the association because of the expected cost increases.

30 percent price increase

The problem is that contracts that are now expiring have to be replaced by much more expensive contracts. Currently, the conditions are so unfavorable that, according to the ZTG, a price increase of 30 percent can be expected for 2022. The sooner operators know how high the cost increase will be in individual cases, the better these costs can be factored in. Given the current market situation, there are hardly any cheap providers to be found. Options to reduce the energy consumption of a car wash system, such as solar panels or other options, will not be able to compensate for the upcoming price increase in the coming winter months.

“We advise our members to check the contracts and the duration now and, in an emergency, to contact the energy supplier in order to make the upcoming contracts plannable,” recommends the ZTG. An advice that car washes should take into account. Not only in Germany but in other countries as well, as energy prices are skyrocketing around the globe.