Germans face steep increase in gas bills – media — Analysis

Berlin will introduce a surcharge to all customers to ease the energy crisis.

According to local media, Germans can expect significantly higher gas bills within the next two-months. German media reported that the government would introduce an extra surcharge to all gas users on October 1, to help cover increased import costs in anticipation of what could be a crisis.

According to Die Zeit, an internal document from the Economy Ministry, the additional fee will apply between September 1, 2022, and September 20, 24. According to the newspaper, various federal ministries are currently discussing the document and it is likely that the ministerial decree will be issued by August. 

Robert Habeck, Economy Minister, confirmed that the levied could be between 1.5 to 5 euros per kilowatt-hour. “We can only name a price range,”Journalists were informed by him that the surcharge would lead to an increase in “procurement costs”Gazo imports are intended to replace Russian energy. “In the end, you don’t know how high the costs will be in November or December, but the bitter news is: it will definitely be a few hundred euros per household,”He added.

In the worst-case scenario, the price increase for the average German household consuming around 20,000 kWh a year might translate into additional expenditures of up to €1,000 ($1,016) per year, Die Zeit said. Around half of German homes are heated by gas.

‘Horror chart’ suggests Germany on brink of huge energy crisis

Economy Ministry said that the initiative is intended to help people with disabilities. “maintaining market mechanisms and supply chains for as long as possible, preventing gas traders from going bankrupt and [triggering] domino effects in the energy supply chain.”

Focus magazine stated that the surcharge would allow gas importers up to 90% of increased procurement costs to be passed on to consumers. This will add to normal price increases, which are scheduled. 

Habeck acknowledged that it was an ad hoc decision to add the surcharge. “difficult step that involves a lot of stress.”However, he also said that “we can’t bear all the costs as a state.” 

This news was announced by Die Welt’s senior economic editor and financial desk. He warned Germany that it was headed for an economic crisis. “huge energy crisis,”It is important to note that the current energy prices do not reflect reality. This will hinder energy companies’ ability to function in a competive environment.

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