Not energy, but only gas.
> What does this mean for people on the ground? Energy prices can easily go 10x (so a $300 bill becomes $3000/month).
Almost no household pays $300 for heating here. We life in a large flat and paid 120€/month last year (including warming all water for the year).
> You’d have to drop the heating of your home by 20 degrees and you’ll still be seeing $1000/month bills.
If we drop heating altogether our flat cools down to 11°C during winter (found out the hard way because our heating system broke down during winter a few years ago), so reducing heating by 100% means a delta of 9°C. Reducing target temperature to 18°C instead of 20°C would save perhaps 25% of gas. I personally expect increases of about 1000€ for the whole heating season for our household (i.e. about triple costs).
The German depencence on gas is bad for multiple reasons, but your numbers are quite hyberbolic.