A new gas tax in Germany will result in higher bills for consumers

Households in Germany will face much higher gas bills autumnalafter the entry into force of the new law allowing energy companies to pass on price increases to consumers. According to some price comparison portals, the changes could result in households paying up to €1,000 more per year.

Gas bills in Germany will rise in a new way from October Gasumlazh

The German federal government recently signed off on a new gas levy (Gasumlazh), which is expected to apply to utility payments from October 1 to the end of March 2024. The levy is designed to help energy companies in Germany struggling with rising gas import prices – as the federal republic seeks to phase out Russian gas – by allowing them to pass on up to 90 percent of their cost increases to customers.

It will apply to all customers, including long-term value-guaranteed contracts – both individuals and businesses. However, at this stage, it is not clear how much the prices will rise.

The price of gas will be from 1.5 to 5 cents per kilowatt-hour

Federal Economy Minister Robert Habeck said the levy would be between 1.5 and 5 cents per kilowatt-hour, or about 500 euros a year. family out of four. Earlier, German Chancellor Olaf Scholz spoke about an increase of 200 to 300 euros per year.

However, if the levy ends up landing at the upper end of the government’s assessment, the additional burden on consumers could be much greater. According to comparison portal Check24, a family of four with an annual consumption of 20,000 kilowatt-hours would see their bills increase by €476 a year with a 2 cents surcharge. With a surcharge of 5 cents, their price will increase by 1190 euros.

The change will affect millions of people across Germany – about half of everyone houses and apartments in the country are heated by gas systems – at a time when household finances are already strained rapid growth of inflation.

Description of collection to dpa as “not a good move, but a necessary one”, Habeck promised that no one would face financial hardship as a result and said support measures would be implemented for those struggling with their bills.

Gas companies struggle with rising prices

The government said that the levy is necessary to ensure the country’s gas supply in winter. with Russia is reducing supplies to Europe and the bloc seeks to diversify its energy balance, prices are rising rapidly, and energy companies are currently forced to cover these increased costs themselves. “Without [the levy]gas suppliers throughout the supply chain will be at risk,” the Federal Ministry of Economy said dpa.

According to the ministry, the exact amount of the fee should be published by mid-to-late August, and the resolution will be submitted to the federal cabinet in the near future. The fee will be set at the same level for all gas suppliers in Germany.