London Daily

Focus on the big picture.
Saturday, May 31, 2025

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
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
Labour MPs Urge Chancellor to Tax Wealthy Over Cutting Welfare
Publication of UK Child Poverty Strategy Delayed Until Autumn
France Detains UK Fishing Vessel Amid Post-Brexit Tensions
Calls Grow to Resume Syrian Asylum Claims in UK
Nigel Farage Pledges to Reinstate Winter Fuel Payments
Boris and Carrie Johnson Welcome Daughter Poppy
×