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Gas price shock – That will change in April

2024-02-15T12:52:19.624Z

Highlights: Gas price shock – That will change in April.. As of: February 15, 2024, 1:41 p.m By: Lars-Eric Nievelstein CommentsPressSplit In 2022, the federal government decided to reduce taxes on gas and district heating. The measure is now expiring. This means additional costs for millions of households. Experts are already recommending that you consider changing providers. For many households, April 1st brings a double additional burden because electricity prices also rise.



As of: February 15, 2024, 1:41 p.m

By: Lars-Eric Nievelstein

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Press

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In 2022, the federal government decided to reduce taxes on gas and district heating.

The measure is now expiring.

This means additional costs for millions of households.

Berlin – From April, millions of Germans will have to pay higher gas bills.

The “reduced sales tax” on gas and district heating is expiring and will then be 19 percent instead of seven percent.

Experts are already recommending that you consider changing providers.

Original VAT on gas

19 percent

Reduced to until March 31, 2024

7 percent

Projected additional burden for three-person households

217 euros (per year)

Government reacts to invasion – sales tax on gas has fallen significantly

It began in October 2022: After energy prices rose significantly in the wake of the Russian invasion, they represented a significant burden for many citizens. The federal government responded by lowering the sales tax rate on the supply of gas.

The same should also apply to district heating, which primarily provided heating for many rental apartments.

A gas meter with a reading.

In 2022, the federal government decided to reduce taxes on gas and district heating.

The measure is now expiring.

This means additional costs for millions of households.

© IMAGO / mix1

So, as part of the third relief package, the Bundestag and Bundesrat approved the so-called “Law for the temporary reduction of the sales tax rate on gas deliveries via the natural gas network”.

Retroactively from October 1, 2022, the corresponding tax should fall from 19 to seven percent.

The sales tax is designed as an indirect tax that companies pass on to consumers.

Conversely, the government argued, the same should apply.

She expected that companies would pass on the tax cut “one-for-one” to citizens.

Measure ends - gas will become more expensive from April

The crux of the matter is the word “temporary” – the measure should apply until the end of March 2024.

What this means in concrete terms is that gas will become more expensive again from April.

Focus

has made a few sample calculations here

.

An average household with three people would therefore pay around 217 euros more per year.

The annual gas costs with a gas consumption of 20,000 kilowatt hours are on average nationwide (with 7 percent VAT) at 2,644 euros.

With the full VAT rate it would be 2,941 euros.

This would result in an additional burden of 297 euros per year.

Although gas prices have fallen sharply over the last year, they are still above pre-war levels.

At the European level, the price of gas recently fell to a new low - 25 euros per megawatt hour.

Electricity prices also affected – providers increase prices

But be careful: it doesn't stop with rising gas prices.

For many households, April 1st brings a double additional burden because electricity prices also rise.

The two large energy companies EnBW (Kalrsruhe) and EWE (Oldenburg) are raising their prices.

This was revealed by a calculation by the comparison portal Verivox at the beginning of February.

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EnBW customers will see an electricity price increase of 15.9 percent.

“For a model household with an annual consumption of 2,900 kilowatt hours, this means additional costs of around 16 euros per month,” the company said.

At EWE, it was the increased network fees and the surcharge for electricity-intensive businesses that caused the energy provider to increase prices.

For a model household with 2,800 kilowatt hours of consumption, there is an additional burden of 62 euros.

Not all electricity providers want to increase their prices.

Some providers are even planning to reduce it.

Either way, consumers should take a closer look at their costs, compare offers and, if necessary, switch gas and electricity in order to get cheaper contracts.

Depending on consumption and region, savings can amount to hundreds of euros.

Source: merkur

All news articles on 2024-02-15

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