"We must make sure that energy remains affordable to the poorer groups. It is very, very urgent when we take the rising energy prices into account," she told a meeting of German city mayors in Erfurt.
Merkel said that power supplies were particularly susceptible to the changes that Germany needed to adopt as it seeks to transition to a low-carbon economy.
Natural gas prices roared back this week after the German energy regulator suspended the certification process of Russia’s Nord Stream 2 pipeline, dashing hopes for a quick end to the gas crunch. Prices began rising in August, leading to higher-than-expected energy bills for consumers and contributing to inflation across the bloc.