Energy prices in Germany continue to rise - financial experts warn of high costs for household energy

Energy prices in Germany continue to rise - financial experts warn of high costs for household energy

Energy remains expensive for German households, although individual energy sources have become cheaper. According to a report from the Federal Statistical Office, household energy prices in September were almost 60 percent higher than the annual average for 2020. In comparison, consumer prices rose by only 17.8 percent overall. Electricity and district heating have become more expensive in the short term, while heating oil, gas and solid fuels were cheaper in September than in the previous year. In a long-term comparison, gas is almost twice as expensive as at the beginning of 2020 and light heating oil is even 125 percent more expensive. Firewood and pellets have become around two thirds more expensive. However, the lower stock market prices for gas are not reaching all consumers, as many are still tied to old contracts. The federal government plans to extend the energy price brakes for electricity, gas and district heating until the end of April 2024 in order to avoid uncertainties due to international developments. However, the VAT on gas and district heating is to be raised again to 19 percent at the turn of the year, which will lead to a price increase in the heating season. Additional costs also arise from the greater increase in CO2 prices for heating and refueling. Consumer advocates and energy companies are calling for a reduction in electricity prices to support the energy transition. Reducing electricity tax and adjusting network fees are mentioned as possible measures.

According to a report from web.de,

The high energy costs continue to burden private households in Germany. Household energy prices in September are almost 60 percent above the 2020 average. In the short term, electricity and district heating have become more expensive, while heating oil, gas and fuels were cheaper in September. Compared to the beginning of 2020, gas is almost twice as expensive and light heating oil is 125 percent more expensive. The prices for firewood and pellets have risen by around two thirds. However, the lower stock market prices for gas are not reaching all consumers. The federal government plans to extend the energy price brakes for electricity, gas and district heating until the end of April 2024 in order to avoid uncertainty. However, the VAT on gas and district heating is to be raised again to 19 percent at the turn of the year, which will lead to a price increase in the heating season. Consumer advocates and energy companies are calling for electricity prices to be reduced in order to support the energy transition. One possible measure would be to reduce the electricity tax and adjust network fees.