Changes from October: what gas customers must now reckon with

A few things will change for gas customers from October 1st: two surcharges will be due, and value added tax will be reduced in return. What does this mean in concrete terms for consumers and their gas bills?

The Bundestag decided today that less VAT will be charged for natural gas deliveries and district heating. The rate will be reduced from 19 to seven percent for a limited period from October 1 to the end of March 2024. But that is not the only change in the gas price from October.

The federal government has decided not to levy the gas procurement levy of 2.419 cents per kilowatt hour (kWh), which was also originally planned from October 1st. Two other levies are due for this: the gas storage levy and the balancing energy levy. What do these changes mean on the bottom line for private households? What burdens and reliefs on the gas bill do you have to be prepared for?

That brings the VAT reduction

The biggest change is certainly the reduced value added tax from 19 to seven percent. This should have a noticeable effect on the gas bill. According to the comparison portal Check24, this change will save a family 306 euros. Due to the reduction in VAT to seven percent, a model household only has to pay 4065 euros instead of 4371 euros at the current gas price.

In a single household, the savings amount to 87 euros. These calculations are based on consumption of 20,000 kWh for a family and 5,000 kWh for a single household.

Charge the standard and gas storage surcharge

The gas procurement levy is off the table, but two other new levies will be due from October 1: the control energy levy (0.57 cents/kWh) and the gas storage levy (0.059 cents/kWh). For a model household with 20,000 kWh, the control energy levy increases the gas bill by 114 euros, while the gas storage levy drives it up by another twelve euros. That makes a total plus of 126 euros.

For a single household, the gas bill will increase by EUR 31.45 as a result of the new allocations. Of this, 28.50 euros are due to the control energy levy and 2.95 euros to the gas storage levy. The bottom line is that the various changes as of October 1 lead to an average reduction of 180 euros for a family, a single person has to pay 55.55 euros less.

Gas bill just tripled

However, the comparison with the previous year’s values ​​remains bitter. Finally, the average gas price for consumers reached a new record of 21.9 cents per kilowatt hour in September. Accordingly, a model household with a consumption of 20,000 kWh paid an average of 4371 euros per year per gas.

For comparison: According to Gas Check24, in September 2021 the same amount still cost 1316 euros. This corresponds to an increase of 232 percent. As a result, the gas bill has more than tripled within a year.

Hoping for the gas price brake

In view of the rapid rise in gas prices, the relief for consumers through the reduction in VAT is just a drop in the ocean, especially since it is being thwarted to some extent by the two new surcharges effective October 1st.

Only the gas price brake, on which the government has agreed in principle, should bring noticeable relief for households and companies. Details on the specific design are not yet available. The “Independent Commission for Gas and Heat” is to present proposals in the next few days. Much will then depend on how high the government-subsidized “basic consumption” is set for households.