Germany Sets Surcharge for Homes to Share the Cost of Gas Surge
2022.08.15 14:38
© Bloomberg. A partially lit hotel at night in Frankfurt, Germany, on Wednesday, July 27, 2022. Germany is set to bring some coal plants back online to keep the lights on this winter while higher power prices are contributing to record inflation and squeezing consumers as they struggle with higher bills.
(Bloomberg) — German natural gas consumers will have to pay extra 2.419 euro cents per kilowatt hour as the country tries to distribute higher energy costs among consumers, after Russia curbed flows to Europe.
The levy will kick in from October, Trading Hub Europe said in a statement Monday. For an average family of four, that might amount to additional costs of around 500 euros ($510).
Economy Minister Robert Habeck is scheduled to comment on the measure at 3:30 p.m. in Berlin.
Utilities will be able to pass along costs for offsetting missing Russian supplies from the start of the fourth quarter. Germany had been trying to avoid making consumers pay for higher energy costs as a result of Russia’s maneuvers in the midst of its war in Ukraine. But uncertainties over gas supplies — which officials fear could be cut off for good at any time by Russia — leave no choice.
German Finance Minister Christian Lindner has said he will look at ways of exempting the levy from sales tax in an effort to at least partially ease the burden on consumers.
Europe’s focus shifted from gas supply to consumption in the midst of one of the biggest energy crises in history. How much gas countries will be able to save in the coming months will largely determine the continent’s ability to go through the winter. Incentives to reduce demand is expected to be at the center of the region’s agenda.
Germany’s gas storage facilities are 75% full, according to data from Federal Network Agency, known as BNetzA.
©2022 Bloomberg L.P.
