Germany imposed an additional fee on consumers for more expensive energy – Fortum’s subsidiary Uniperkin may soon charge 2.4 cents more for gas per kilowatt hour

Germany imposed an additional fee on consumers for more

The German government decided in July that energy companies will be allowed to pass on the increased purchase prices of gas to customers from the beginning of October. The amount of the increase was decided now.

In Germany, gas consumer prices will rise by 2.4 cents per kilowatt hour, as energy companies pass on their increased costs to consumers. The person in charge of the German gas market will tell you about it Trading Hub Europe (you will switch to another service).

The German government decided that from the beginning of October, energy companies will have the opportunity to pass on the increased purchase prices of gas to their customers. The country’s Ministry of Economy previously estimated that the surcharge for consumers would be 1.5–5 cents per kilowatt hour.

The price increase is valid until April 2024 and is reviewed every three months.

The government plans to compensate for the increases

The energy crisis is hitting Germany and German households hard, as almost half of homes are heated with gas.

An increase of two cents per kilowatt hour would mean an additional annual cost of 400 euros for an average family of four. With an increase of three cents, the cost would rise to 600 euros.

However, the German government plans to mitigate the effects of the increase on consumers. The plan is to agree on the means by the beginning of October, when the increase will come into effect.

As one option, it has been suggested that the increase would be exempt from value added tax. However, this would require a separate permit from the EU Commission, which Germany has already requested, according to Handelsblatt.

A gas price ceiling has also been on the table, which could be set for the “basic consumption” of gas.

If gas is used more than average, you would have to pay the market price for it. It is believed to also encourage consumption reduction.

According to experts, both the fiscal means and the price ceiling run into the same problem: how are they properly targeted to those in need?

The same means have been discussed in Finland as well, and the criticism has also been in the same direction.

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