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Energy costs: What should consumers expect in the future?

2024-02-10T04:37:29.315Z

Highlights: VAT reduction on gas could only expire at the end of March. The Growth Opportunities Act is stuck in the mediation committee of the Bundesrat and Bundestag. It provides tax relief for companies of seven billion euros per year. The Federal Council had blocked the law because it led to a loss of income for the states. The next regular meeting of the Federal Council is on March 22nd, although there could also be a special meeting. Meanwhile, tenants will receive the first operating cost bills for 2023 in these weeks.



As of: February 10, 2024, 5:17 a.m

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The normal VAT rate for gas should actually apply again from the beginning of March.

But a corresponding law is stuck - for the benefit of consumers?

Consumers can hope that the VAT cut on gas will only expire at the end of March - and not at the end of February.

Corresponding signals came from the SPD against the background of negotiations between the Bundesrat and the Bundestag.

The energy industry called on politicians to allow the tax cut to apply until the end of March.

This would relieve the burden on households until the end of the heating season, said the head of the industry association BDEW, Kerstin Andreae, to the German Press Agency (as of February 4th).

VAT reduction on gas could only expire at the end of March

Because of the increased energy prices after the Russian attack on Ukraine, the federal government reduced the VAT rate for gas and heat from 19 to 7 percent, making both cheaper.

According to current law, the measure is set to expire at the end of March.

However, the Growth Opportunities Act passed by the Bundestag stipulates that the VAT reduction expires at the end of February.

The reason given is that energy prices have now fallen again.

Law is stuck

However, the Growth Opportunities Act is stuck in the mediation committee of the Bundesrat and Bundestag.

Essentially, it provides tax relief for companies of seven billion euros per year.

The Federal Council had blocked the law because it led to a loss of income for the states.

The mediation committee meets on February 21st.

The next regular meeting of the Federal Council is on March 22nd, although there could also be a special meeting.

Because of the increased energy prices, the federal government reduced the VAT rate for gas and heat from 19 to 7 percent, making both cheaper.

(Symbolic image) © Zoonar.com/Olena Mykhaylova/Imago

What this all means for consumers

According to calculations by the comparison portal

Verivox,

a delayed increase in VAT would bring relief of 20 euros for a family with an average consumption of 20,000 kilowatt hours.

However, the burden of returning to the full VAT rate would be significantly heavier on an annual basis: the model family currently pays a nationwide average of 2,074 euros for gas with the reduced VAT rate.

With the full rate of 19 percent it would be 2,307 euros - an increase of 11 percent.

Verivox energy expert Thorsten Storck emphasized at the time (February 5): “As a result of the change, consumers have no special legal right of termination.

Therefore, you should check your contract as early as possible and look for the cheapest possible tariff.”

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Consumer advocates advise checking your heating bill

Meanwhile, tenants will receive the first operating cost bills for 2023 in these weeks.

This also includes the annual financial statement for heating costs.

From the point of view of consumer advocates, it generally makes sense to examine heating billing more closely.

New gas or oil heating?

Consumer advocates point to rising energy costs

The Hamburg Consumer Center recently advised against installing a new gas or oil heating system in view of the likely higher gas and oil prices in the future.

(With material from dpa)

Source: merkur

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