Germany: We will pay more for gas

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The VAT rate (16%), which is currently lowered due to the Covid-19 pandemic, will rise again to 19% from January 1, 2021, and a fee will be charged for the emission of one ton of carbon dioxide (CO) generated by the combustion of gas in the amount of 25 euros per ton (COâ‚‚ tax). Gas suppliers are likely to pass this rise on their consumers without any cuts.

Specifically, the price of 1 tonne of CO₂ at € 25 means that heating with natural gas per kilowatt hour (kWh) will increase by 0.6 cents per kilowatt hour. A family of 4, consuming 20,000 kWh per year for heating a house boiler room, will pay 120 euros more. The payment for the use of heating networks in 2021 will also increase by an average of 2%, which in monetary terms for a family of 4 will be expressed in 8 euros. But this is the national average. In East Germany, for example, in the federal state of Mecklenburg-Vorpommern, the increase will be doubled.

By law, suppliers are required to notify consumers of the gas price increase for 2021 in writing at least 6 weeks in advance. After that, customers have the right to terminate the gas supply contract. This means the ability to timely find a cheaper energy supplier.

Alex Gradov

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