DThe planned surcharge for all gas customers to cushion the sharp increase in the purchase price for natural gas is expected to apply from October 1st. The Federal Government intends to publish exactly how much more consumers will have to pay on the Internet in mid or late August. This was announced on Thursday from circles of the Federal Ministry of Economics – the draft for the corresponding ordinance was sent to the vote between the ministries today.
The amount of the surcharge depends on the compensation claims made by the gas importers, it said. Chancellor Olaf Scholz last week called an increase in gas prices by 2 cents per kilowatt hour and spoke of additional annual costs of 200 or 300 euros for a family of four. About half of all apartments in Germany are heated with gas.
Note the VAT
The comparison portal Check 24, on the other hand, calculated additional costs of 476 euros for an annual consumption of 20,000 kilowatt hours and a 2 cent levy. This includes VAT. Economics Minister Robert Habeck also expects several hundred euros more. “We expect that it will be between 1.5 and 5 cents per kilowatt hour,” said the Green politician on the amount of the levy.
If the average consumption is 20,000 kilowatt hours of gas per year, it is in the middle three-digit euro range. One does not know exactly how high the gas procurement costs are in November and December. “But the bitter news is: it’s definitely a few hundred euros per household.”
Based on the Check-24 bill, a surcharge of 5 cents per kilowatt hour would mean an additional burden for families of 1190 euros per year. So one thing seems clear: it is likely that consumers will be asked to pay more than the Chancellor had envisaged.
Marcel Fratzscher, President of the German Institute for Economic Research (DIW), expects that the heating costs of a household will at least triple in winter in view of the levy. Many households in Germany could not afford that. “Passing on the real costs to customers must be accompanied by a third relief package for people with middle and low incomes – otherwise this passing on would lead to a social catastrophe,” the economist was quoted as saying.
The surcharge is intended to enable consumers to participate in the sharp rise in gas purchase prices due to the throttling of Russian deliveries. The surcharge will apply for a year and a half, i.e. until the end of March 2024.
“Without a levy, gas suppliers would be at risk”
According to earlier information, the plan is for importers to be able to pass on 90 percent of the higher procurement costs via the levy. The importers still have to bear their own costs until the end of September. Both companies and private households have to pay the surcharge. It comes on top of the normal price increases that are gradually taking effect.
In view of the tense situation on the gas market, the surcharge is necessary in order to maintain the gas supply in the coming winter. “Without them, gas supply companies would be at risk throughout the supply chain,” the ministry said.
In other words, without the participation of consumers, there are fears in Berlin that gas suppliers could go bankrupt. The levy should be the same for all suppliers. This means that the burden is distributed fairly across many shoulders.
The details are to be regulated in a legal ordinance based on the Energy Security Act. The regulation is expected to be adopted by the cabinet shortly. The reimbursements for the importers are to be organized by the so-called “market area manager” Trading Hub Europe. The company is responsible for organizing the German gas market. The importers are obliged to present their additional costs precisely. These are then passed on to the end customers via the suppliers.