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Gas will be significantly more expensive from April – what you can do now

2024-03-28T04:26:27.755Z

Highlights: Gas will be significantly more expensive from April – what you can do now. As of: March 28, 2024, 5:14 a.m By: Lisa Mayerhofer CommentsPressSplit From April, consumers will have to pay full VAT on gas again. To prevent suppliers from demanding even more money, affected gas customers should act quickly. What can consumers do now? An overview of the most important questions and answers. Consumers should switching to a cheaper. provider.



As of: March 28, 2024, 5:14 a.m

By: Lisa Mayerhofer

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From April, consumers will have to pay full VAT on gas again. To prevent suppliers from demanding even more money, affected gas customers should act quickly.

Frankfurt – From April 2024, many people in Germany will have to prepare for higher gas prices. With the return to the full VAT rate of 19 percent, an average increase of eleven percent can be expected, the comparison portal Verivox announced on Wednesday morning. This corresponds to an additional burden of 220 euros per year for a model family, and for basic care it is even 291 euros.

What can consumers do now? An overview of the most important questions and answers.

Why is VAT on gas increasing from April?

In order to ease the burden on households due to high energy prices, the government has reduced the VAT on gas to seven percent since October 2022. A model family with an annual gas consumption of around 20,000 kilowatt hours was saved an average of 426 euros. However, the measure was limited from the outset until March 31, 2024. 

How much more will gas cost from April?

The expiry of the reduced VAT rate will be reflected in the final price, said a spokesman for the Association of Municipal Companies (VKU), which represents municipal utilities, among others. The VAT makes the state part of the gas price more expensive. However, other factors had a dampening effect on prices, for example falling purchase prices. The extent to which suppliers could compensate for the higher tax rate depends on the company's procurement strategy. VAT is a component of the gas price, alongside, for example, the price for procurement and distribution. 

From April onwards, many people in Germany will have to prepare for higher gas prices. (Symbolic image) © Sven Hoppe/dpa

According to Verivox calculations, the average gas price for households is currently 9.8 cents per kilowatt hour. With the higher VAT rate it is 10.9 cents. According to Verivox, a family with a gas consumption of 20,000 kilowatt hours has average additional costs of around 220 euros per year. According to calculations by the Check24 portal, a family with a consumption of 20,000 kilowatt hours will incur additional costs of 173 euros - in the current year 2024. A single person with a consumption of 5,000 kilowatt hours would have to pay 52 euros more.

What can I do to avoid even higher costs?

The Finanztip advice page recommends consumers to read the gas meter on March 31st or April 1st and report the meter reading to the gas supplier. This ensures that the correct quantity is calculated at the old, tax-deferred price. Without the meter reading, the supplier can estimate and you may end up paying more than was actually used. 

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Higher VAT on gas: Do I have a special right of termination?

Unfortunately no. As a result of the change, customers would have “no special legal right of termination, so they should check their contract as early as possible and look for the cheapest possible tariff,” advised Verivox. Compared to the cheap gas tariffs, the basic supply is “currently twice as expensive on average”.

So is it worth changing providers?

Florian Munder, energy expert at the Federal Association of Consumer Organizations, said that the current new contract prices for gas customers are far below the high prices of the energy price crisis. Consumers should compare prices and consider switching to a cheaper provider. “It is important to look closely at whether the provider is reputable.” 

With material from dpa and AFP

Source: merkur

All news articles on 2024-03-28

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