The state ensures higher prices - the new gas surcharge

Created: 2022-08-04Updated: 2022-08-04 7:29 PM

A temporary gas levy is intended to benefit gas suppliers.

The measure means an additional burden for consumers.

© Bernd Weißbrod/dpa/Illustration

A government levy means that consumers face additional energy costs of several hundred euros a year.

But it can also be more.

Berlin - It will be more expensive for gas customers - much more expensive.

This is ensured by a price wave that is gradually reaching consumers, the reason being the immensely increased procurement costs for natural gas.

On top of that, there is now a state gas surcharge.

The federal government wants to prevent a collapse of importers as a result of severely curtailed Russian gas supplies.

They agreed on Thursday on a statutory ordinance on the levy.

Economics Minister Robert Habeck (Greens) said: “The temporary levy is a consequence of the crisis caused by Russia.

It is not an easy step, but it is necessary in order to secure the heat and energy supply in private households and in the economy."

Why is energy so expensive?

According to the draft regulation, Russia's illegal attack on Ukraine has drastically aggravated the already tense situation on the energy markets.

Russia has significantly reduced gas volumes through the important Nord Stream 1 pipeline, citing technical reasons.

The federal government sees the technical reasons as a pretext, Habeck had accused Russian President Vladimir Putin of a "perfidious game".

Why is the levy coming?

Gas importers have delivery obligations to their customers, especially to municipal utilities.

The importers can only meet these delivery obligations by replacing the lost quantities from Russia by purchasing much more expensive quantities on the short-term market.

So far, these additional costs cannot be passed on.

The result: Significant losses have been incurred by importers.

That is why the federal government has agreed on a rescue package worth billions with the utility Uniper.

At the same time, the federal government also decided on a levy on all gas customers.

The alternative would have been to finance the financial compensation for the importers through the state budget.

However, this would be associated with "considerable burdens" on the budget, according to the regulation.

Politically, the federal government is also sending a price signal: Saving on gas is also financially worthwhile.

How does the levy work?

The core are compensation payments to the gas importers, which are sufficient to prevent insolvencies, it is said.

The purpose of the levy was to prevent "further massive price increases due to the insolvency-related loss of important gas importers for the market".

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The financial compensation for affected gas importers is limited in time to the fulfillment of contractual delivery obligations from October 1, 2022 to April 1, 2024. According to the ministry, the affected gas importers will bear all costs for the replacement procurement alone until October.

After that, they bear 10 percent of the costs permanently themselves.

How is the levy calculated?

There is a complex formula for this that takes into account, among other things, the difference between the contractually agreed and the current purchase price.

The amount of the additional costs must be certified by auditors.

According to the ministry, the compensation will be made by the gas suppliers, who will usually pass on the costs to their customers.

The amount of the surcharge will be determined in cents per kilowatt hour by the so-called market area manager by August 15 and published on the Internet - this is Trading Hub Europe (THE), an association of network companies.

And how high is the levy at the end?

That depends essentially on the volume and price of the gas procured as a replacement and on demand.

The higher the compensation for the importers, the higher the surcharge.

The Ministry of Economics has so far assumed a range of 1.5 to 5 cents per kilowatt hour.

The comparison portal Verivox calculated additional costs of between 89 and 298 euros for this range for a single household with an annual consumption of 5000 kilowatt hours.

A typical couple household would be charged between 214 and 714 euros, a family in a single-family house with 357 to 1190 euros.

This includes VAT.

In addition, there are drastic market-driven price increases that are gradually reaching customers.

Many people are affected because about half of all apartments in Germany are heated with gas.

When will the surcharge reach consumers?

The surcharge will apply from the beginning of October - but it will not be visible immediately on the bills, but with a little delay, according to the ministry.

For reasons of consumer protection, there are notice periods in the Energy Industry Act of four to six weeks that must be observed.

Therefore, the surcharge will probably be shown on the invoices for the first time in November/December with a slight delay.

According to the ministry, the surcharge is billed monthly and can be adjusted every three months.

Should Russia fully meet its contractually guaranteed quantities again, the price adjustment will be set to zero.

The Ministry of Economics is currently examining how to deal with fixed contracts that do not allow any additional levies or increases.

The energy associations BDEW and VKU called on the federal government to make improvements.

In a letter to Habeck, which was available to the dpa, they warned that the price adjustment could not be enforced against customers with contracts without the possibility of adjustment until October 1st.

This affects an average of around 25 percent of household customers.

In the case of fixed-price contracts, there is a risk of total failure if the allocation cannot be contractually passed on.

"This creates significant liquidity problems for the energy suppliers, which can also lead to insolvency due to the already tense financial situation." The associations called for legal changes after the summer break of the Bundestag in September.

To what extent is the federal government planning additional relief?

There should be further relief, especially for low-income private households - but the question is: when will this come, at the same time as the levy will take effect?

Chancellor Olaf Scholz (SPD) had announced a major housing benefit reform at the beginning of next year.

Habeck said: "The federal government's decision for the temporary levy will and must be accompanied by further relief for citizens." Aid programs for companies should also be extended.

dpa