Energy costs will fall in 2023: opportunities and effects for consumers and households

Energy costs will fall in 2023: opportunities and effects for consumers and households

According to a report by www.telepolis.de,

In 2023, energy costs will fall significantly, which will bring noticeable relief to many households in Germany. According to current data from Check24, spending on energy has fallen compared to the previous year. A model household that had to spend an average of 6,849 euros on energy from January to November 2022 will only pay 5,798 euros this year, which corresponds to a decrease of 15 percent or 1,051 euros.

The decline in heating costs is particularly noticeable. A model household with a consumption of 20,000 kilowatt hours had to budget 3,027 euros for gas and heating oil last year; currently it is only 2,322 euros - a decrease of 23 percent. Gas costs also fell by 25 percent to 2,396 euros.

At the turn of 2024, millions of households will be able to benefit from falling gas prices, as almost half of basic suppliers are reducing prices, affecting around 2.7 million households. The average reduction is 24 percent.

There is also positive news when it comes to electricity costs, as costs have fallen. A model family with a consumption of 5,000 kWh paid 2,136 euros in November 2022, this year only 1,897 euros - a saving of 11 percent. The price of electricity on the exchange has almost halved to 89 euros per megawatt hour.

The falling energy costs could brighten the mood, but from March 2024 the federal government will be digging deeper into citizens' pockets via VAT. The VAT therefore rises again to 19 percent, which, according to Check24, increases the costs for the model household to an average of 2,620 euros.

The positive development in heating and energy costs can therefore be affected by increasing VAT. It remains to be seen how this countermovement will affect households and the market as a whole.