As of: March 28, 2024, 12:30 p.m
By: Carina Blumenroth
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In the future, you will have to dig deeper into your pockets for gas and district heating. The reason for this is the renewed increase in the VAT rate. What this means for you.
Every month, citizens experience changes, some that provide relief, others that mean more money has to be spent. This also applies to the renewed increase in VAT for gas and district heating. From April 1st, the VAT rate will be back to 19 percent. In October 2022, this was temporarily reduced to seven percent. The reason for this was the high energy prices as a result of the Russian war of aggression on Ukraine. What you as a consumer need to know now.
Increase in VAT: Read the meter reading
From April 2024, the VAT rate for gas and district heating will be 19 percent again. (Symbolic image) © Michaelgromball805/Pond5/Imago
Since prices will change from April if you purchase gas or district heating, you should read the meter reading on April 1st and send it to the supplier. This is what energy law expert Rico Dulinski from the Brandenburg Consumer Center recommends. This is the only way to be sure that the energy used is billed at the correct price. “If the supplier does not have consumption data, he is allowed to estimate the consumption, which can lead to incorrect allocations and, as a result, higher invoices,” says Dulinski.
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What can gas customers do?
If you purchase gas, you can of course compare the prices and see if you can find a cheaper offer. However, you must note that you do not have an extraordinary reason for termination solely due to the adjustment of the VAT rate. If you also receive information from the provider about price adjustments, you should check them carefully. If you notice a change in the work price there, you can make use of the special right of termination.
What can district heating customers do?
If you heat with district heating, you initially have no options to switch, as every district heating network is a local monopoly. So there is no competition. The
Federal Association of Consumer Organizations
is therefore calling for reforms to the district heating monopoly sector. In general, district heating prices usually consist of two components. Namely from the work price per kilowatt hour and the basic price per kilowatt of connected power. The
consumer advice center
informs that the latter can also be referred to as the connection value or performance price. Accordingly, the actual heat consumption is billed for the work price; the basic price is a fixed price per year.
(With material from dpa)