Energy crisis – gas prices: German government assures population relief – News

  • From autumn, the consumption of gas for German citizens will be significantly more expensive, the additional costs will be around 2,419 cents per kilowatt hour.
  • The federal government has therefore again promised relief. She sees that there is a significant additional burden on people.
  • Business, social organizations and trade unions are demanding more support to protect people from poverty and companies from losses.

“When the levy is due on October 1 of this year, further relief will also be available for the citizens of this country,” said the deputy spokeswoman for the federal government, Christiane Hoffmann.

When the levy becomes due, further relief will also be available for the citizens of this country.

The surcharge is intended to support gas importers who, because of the reduced gas supplies from Russia, now have to buy gas elsewhere at significantly higher prices. The importers have an obligation to deliver to their customers, but are not yet allowed to pass on the additional costs. The gas surcharge is intended to absorb up to 90 percent of the additional costs. In this way, supplier bankruptcies and thus delivery failures should be avoided.

Almost 500 euros additional costs per year

For a detached house with an annual consumption of 20,000 kilowatt hours, the additional costs would be around 484 euros per year. In addition, there could be VAT – but the traffic light coalition wants to prevent this from becoming due. The federal government has asked the EU for an exception so that it does not have to levy VAT. But there is still no answer, said a spokesman for the Ministry of Finance in Berlin.

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Almost 500 euros more per year and a possible VAT on top of that – it will be significantly more expensive for gas consumers to reach for the pan.

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Hoffmann explained that the amount of the surcharge seems to be within the range that the federal government had originally assumed. Chancellor Olaf Scholz spoke of additional burdens of several hundred euros per household.

Unions are calling for more government help

Due to additional costs in the billions from the new gas levy, the economy and trade unions are demanding more state aid. The significant increases in energy prices have already led to additional costs of around seven billion euros compared to the previous year, as the Steel Industry Association calculated for its industry. With the gas levy that has now been determined, around 500 million euros would be added annually. Competitive prices for gas and electricity are a basic requirement for steel production and steel-based value creation in Germany.

Gathered workers in front of a steel company.

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The Association of Industrial Energy and Power Industries (VIK) warns of serious consequences for many companies: “The rising gas price is particularly affecting companies that cannot pass on the rising costs because they are bound by fixed supply contracts or are based on a given world market price have to.”

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Warning of the spiral of poverty

Social organizations are warning of a new spiral of poverty and even loss of housing if compensatory measures are not taken immediately. “We take the federal government at its word and expect comprehensive help for everyone who needs it,” said the general manager of the joint association, Ulrich Schneider.

The gas surcharge will throw many people, especially those on low and middle incomes, into serious, sometimes existential, difficulties.

The United Services Union is also concerned about the consequences of the planned gas levy. “The gas surcharge will throw many people, especially those with low and middle incomes, into major, sometimes existential, difficulties,” warned union boss Frank Werneke.

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