London Daily

Focus on the big picture.
Wednesday, Aug 26, 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
Church of England Faces Renewed Scrutiny Over Historical Safeguarding Failures
Reform UK Proposes £30 Tax Credit for Long HMRC Telephone Queues
Greater Manchester Secures More Than £100 Million to Upgrade Victorian Railway Stations
East Midlands Railway Urges Essential Travel Ahead of Bank Holiday Strikes
UK Economy Grows 0.4 Percent in Second Quarter as Global and Energy Pressures Weigh
UK Government and Sainsbury’s Launch Plan for 10,000 Youth Work Experience Placements
Scottish Government Plans Tighter Remote-Working Rules and Possible Voluntary Redundancies
Scottish Budget Faces More Than £700 Million Reduction After Tax Revenue Adjustment
Nearly 100 Labour MPs Press Andy Burnham to Back Electoral Reform Commission
UK Energy Price Cap Rises Four Percent to £1,723 as Middle East Conflict Drives Wholesale Gas Costs
Turnbull Warns AUKUS Could Leave Australia Without Promised Nuclear Submarines
California Billionaires Pour More Than $150 Million Into Fight Over Proposed Wealth Tax
German Broadcaster Goes Dark to Warn AfD Could End Its Saxony-Anhalt Service
Badenoch Plans Major Shadow Cabinet Reshuffle as Tories Struggle in Third Place
UK Government Demands Action Against Social Media Content Promoting Dangerous Driving
Labour Backbenchers Prepare Push for Electoral Reform Under Andy Burnham
Fire at Gatwick Airport Car Park Destroys 140 Vehicles and Cuts Local Power
UK Plans Voluntary Libido-Suppressing Medication Programme Across 20 Prisons
NHS England Launches Free Home Cervical Cancer Testing Kits Nationwide
Imperial College Study Warns North Sea Oil Projects Could Cause Hundreds of Billions of Pounds in Climate Damage
UK Inflation Rises to 2.9% as Middle East Conflict Pushes Up Energy Costs
Prime Minister Andy Burnham Visits Kyiv to Strengthen UK Support for Ukraine
Premier League Season Opens With Managerial Debuts and Dramatic Early Fixtures
England Cricket Drops Brydon Carse From Selection Pending Club Investigation
Graeme Dott Convicted of Child Sexual Abuse Offences in Scotland
Protesters Occupy British Aircraft Parts Factory Over Alleged Military Links to Israel
More Than 100 Former British and French Diplomats Call for Sanctions on Israel
Ipsos Poll Shows British Public Split Between Immigration Controls and Economic Growth
British Cybersecurity Agencies Raise Alert Over Growing Threats to Critical Infrastructure
Two-Thirds of England Now Under Official Drought Conditions After Prolonged Summer Heat
Institute of Directors Calls for Urgent Action to Revive Britain’s Stagnant Labour Market
Andy Burnham Visits Kyiv on First Foreign Trip and Pledges Continued British Support for Ukraine
New Daily Diabetes and Weight-Loss Pill Launches in UK Pharmacies
UK Payroll Employment Falls by 94,000 as Labour Market Cools
Onshore Wind Planning Applications in England Reach Ten-Year High After Rules Eased
UK Government Demands Social Media Platforms Remove Dangerous Driving Content After A66 Crash
Thames Water Creditors Face Backlash Over Proposed Corporate Restructuring
Twelve Arrested After Fatal A66 Crash Linked to Organised Crime Investigation
UK Household Energy Debt Could Reach £7 Billion by Year-End
UK Defence Ministry to Use Ukraine Battlefield Data to Train AI Security Systems
UK Government Redirects £4 Billion of Affordable Homes Funding Away From Social Housing
UK Government Borrowing Reaches £1.8 Billion in July, Exceeding Forecasts
UK Prime Minister Andy Burnham Pledges Advanced Missile Support for Ukraine
8Bank of England Holds Interest Rate at 3.75% as Middle East Energy Risks Rise
Prime Minister Andy Burnham to Give Ukraine Classified Storm Shadow Blueprints for Domestic Missile Production
UK Graduate Job Vacancies Plunge 45% to Lowest Levels on Record
Government Audit Reveals Pressure on UK Hospitality From Business Rates and Rising Costs
Kindertransport Survivor Prepares to Revisit European Sites Linked to Her Family’s Wartime Separation
Northern England Transport Operators Strengthen Contingency Plans as Travel Demand Rises
New Implant Trials Offer Treatment Prospects for Patients With Refractory Angina
×