Energy costs: What is the effect of the gas levy?

From 1 October 2022, all customers who use gas as an energy source will pay a temporary gas security levy, which is intended to prevent insolvencies and supply failures in the gas supply. The levy serves to compensate for increased gas procurement costs and amounts to 2.419 cents per kilowatt hour. This was announced by Trading Hub Europe (THE). This company represents the operators of gas supply networks located in Germany.

The background to the gas procurement levy is the ordinance under the Energy Security Act, which came into force on 9 August 2022 by the Federal Government. According to this, gas importers who are directly affected by a significant reduction in total gas import volumes are entitled to financial compensation. Gas consumers pay the levy so that the energy supply in households and businesses is secured.

At the same time, this measure will drive up the cost of gas even more. The housing associations point out that the current situation is not only about securing the energy industry. The gas levy increases the financial burden on tenant households as well as on housing companies. This is because the levy adds an additional 13.4 per cent to the rising gas prices.

"The massive expansion of domestic renewable energies (...) is our sustainable perspective for reducing dependence on expensive energy imports. To this end, the support programmes, such as the federal support for efficient buildings (BEG) or the support for efficient heating grids (BEW), must be improved or expanded," says the President of the German Renewable Energy Federation (BEE) Dr Simone Peter.

Now it is a matter of quickly advancing renewable energies in all sectors in order to exploit their price-reducing effect as soon as possible. The BEE emphasises that renewables can do more. Wind power and solar energy projects can be realised more quickly. Domestic biogas would be available in larger quantities if restrictions in the Renewable Energy Sources Act and in building and licensing laws were lifted. The electricity system must be adapted to the needs of renewables through more flexibility.

(Photo: © Gerd Altmann, Pixabay)