London Daily

Focus on the big picture.
Thursday, Sep 17, 2026

German households face levy of hundreds of pounds on gas bills

German households face levy of hundreds of pounds on gas bills

German households will have to pay hundreds of pounds more a year for gas under a levy to help energy companies cover the cost of replacing Russian supplies.

Before the Ukraine war, Germany imported more than half its gas from Russia.

Germany already has amongst the highest household gas bills in Europe.

The government said the move was necessary to prevent the collapse of the German energy market.

Ministers have promised the levy, which will be imposed from 1 October and remain in place until April 2024, will be accompanied by additional support for households.

Gas prices have soared since the invasion of Ukraine, as Western countries imposed sanctions and pledged to phase out Russian imports.

The EU says it will cut gas imports from Russia by two-thirds within a year, but has stopped short of a total ban.

Trading Hub Europe, the German gas market operator, said it had set the levy at 2.419 cents per kilowatt hour (kWH).

For an average family of four, the charge will amount to an additional annual cost of around €480 ($489; £404), according to the Verivox price comparison platform's calculation of an average gas bill of €3,568 a year.

Businesses will also be subject to the levy and the Federation of German Industries has called for more support.

Economy Minister Robert Habeck said: "The levy is a consequence of Putin's illegal war of aggression on Ukraine and the artificial energy shortage caused by Russia."

"The alternative would have been the collapse of the German energy market, and with it large parts of the European energy market," he told reporters.

Economists warned the levy would further push up inflation - the rate prices are rising - in Germany, which hit 8.5% in July.

The German government has brought in subsidies for low-income households and is now spending an extra €15bn on fuel subsidies through cutting petrol and diesel taxes, providing people with one-off €300 pay-outs, extra child support payments and public transport discounts.

Germany has encouraged its citizens to reduce their energy consumption and in June it introduced measures including dimming street lights, turning off fountains and lowering the temperatures in swimming pools.


Last month, gas prices jumped after Russia further cut supplies to Germany and other central European countries through the Nord Stream 1 pipeline.

Russia sought to justify the cut by saying it was needed to allow maintenance work on a turbine but the German government said there was no technical reason for it to limit the supply.

Soaring gas prices have had a knock-on impact on household energy bills around the world.

In the UK, the typical annual energy bill is forecast to hit £3,582 in October - up from the current figure of £1,971 a year.

Newsletter

Related Articles

0:00
0:00
Close
UK Health Unions Warn of Staffing Pressures as Public and Private Pay Growth Diverges
Rockstar Games Faces Tribunal Claims From 23 Former Grand Theft Auto VI Developers
UK Treasury Faces Tighter Budget Constraints as Borrowing Costs and Pension Spending Rise
Prime Minister Andy Burnham Sets Out Ten-Year Plan for Greater Public Oversight of Utilities
UK Economy Grows 0.4% in July as Services and Technology Activity Strengthen
Scotland, Wales and Northern Ireland Leaders Coordinate Push for UK Constitutional Change
Police Tighten Public-Order Measures After Anti-Immigration Protests in Dover and Portsmouth
UK Ministers Pressed for Answers After US Diplomat Accused of Child Abuse Images Leaves Britain
Jaguar Land Rover Pursues NATO Defense Contracts for Defender Vehicles
British Service Member Dies in Road Accident While Deployed in Ukraine
George Osborne Calls for Britain to Rejoin EU Customs Union
Anthropic Chief Dario Amodei Urges Faster UK Action on Advanced AI Risks
UK State Pension Set for 3.9% Rise Under Triple Lock
UK Labour Market Cools as Payrolled Employment Continues to Decline
Reform UK’s £72 Million in Donations Faces Scrutiny Under Proposed Retrospective Funding Rules
UK Doctors Warn Expanded Pharmacy First Scheme Could Put Patients at Risk
British Airlines Cut Short-Haul Capacity as Jet Fuel Costs Rise
UK News Publishers Forecast 40% Search Traffic Drop as AI Overviews Expand
Axel Springer Wins Approval for £575 Million Daily Telegraph Acquisition
London Mayor Sadiq Khan Opposes Heathrow Third Runway Over Climate Targets
Scotland, Wales and Northern Ireland Leaders Hold Summit Seeking Greater Autonomy
UK Energy Price Cap Set to Rise to £1,723 in October
UK Treasury Warns Middle East Conflict Is Threatening Economic Growth
Labour Moves to Retrospectively Cap Overseas Political Donations After Reform UK Funding Surge
HMRC Warns Nearly Seven Million Adults Are Unclear About State Pension Entitlements
UK Parliament Passes Sovereign Grant Reform Before Conference Recess
British Rail Passengers Gain Automatic Right to Switch Operators During Disruptions
Burnham Hosts Downing Street Business Summit as UK Fiscal Pressure Builds
Labour Government Moves to Challenge £72 Million in Reform UK Crypto Donations
UK Advertising Industry Warns Wider Junk Food Rules Could Put £1 Billion in Media Spending at Risk
Cornwall Opens Devolution Talks With UK Government Over Transport and Local Services
UK Parliament Considers Sovereign Grant Reform Setting Royal Funding at £99.9 Million
Trades Union Congress Calls for Income-Based Energy Tariff Funded by Higher Bank Levy
UK Prime Minister Rejects Second Scottish Independence Referendum
House of Lords Begins Scrutiny of Bill to Lower UK Voting Age to 16
Anthropic Says Claude Was Exploited in Weapons-Related and State-Linked Cyber Activity
Institute of Directors Urges UK Government to Avoid Business Tax Increases in Autumn Budget
Rising Gilt Yields Cut UK Fiscal Headroom to About £13 Billion Ahead of Budget
UK Economy Grows 0.4% in July as Services and Technology Activity Strengthen
UK Government Promises Clearer Student Loan Guidance After Repayment Backlash
Charities Warn Unpaid Carers May Die Before Receiving Government Compensation
Dover Unrest Prompts Review of UK Counter-Extremism Strategy
Celtic Summit Leaders Reassert Right to Pursue Independence From UK
NHS Records Busiest Summer on Record Amid Severe Heatwaves
Harrods Faces Potential £150 Million Compensation Bill Over Al Fayed Abuse Claims
UK Parliament Opens Debate on Landmark Assisted Dying Legislation
Metropolitan Police Investigate Reform UK Over Alleged Foreign Electoral Donations
UK Economy Expands 0.4% in July as AI Investment Boosts Activity
Bank of England Signals Caution on Rates as Inflation Pressures Persist
Tesco Alerts Police After Scammers Use Its Branding in AI-Generated Fraud
×