Rising energy prices could hit families with extra €2000

Rising energy prices could hit families with extra €2000

Energy prices have continued to increase in recent months, with households facing increasingly severe consequences in the period ahead. In Germany, the price hikes may cause average utility costs to rise by an annual 2000 euros.

WORLD JUNE 7. 2022 16:35

Households using gas for heating – about half of all households – and paying directly to the service provider are covered in the following months with the price guarantee applicable to last year. Another raise, however, is around the corner, and this one can mean significant extra costs to households after they sign the new contracts. The price of gas has gone up the most, more than doubling in the course of one year.

For a family of four, consuming 20,000 kilowatt-hours, the additional cost would be about 1,400 euros a year at current prices, the consumer portal Verivox told Frankfurter Allgemeine Zeitung. The total extra expenditure would be 720 euros for a two-member household, and 300 euros for people living alone.

In the case of electricity, the increase is slightly milder, at around 30 per cent. But even that results in higher costs amounting to €400 for families, €270 for couples and €150 for those who live by themselves.

Adding these prices together, it is easily possible for a family of four to incur an additional cost of nearly €2,000 a year. Moreover, as prices are increasing daily, it is also conceivable that the above-mentioned costs will continue to rise. Although the extra costs are mitigated to a small extent by the government’s aid packages, it is of practically no real help to people. For example, each adult receives a one-off energy supplement of €300, but this is taxable, meaning that just over half of the allowance actually remains. In addition, families will receive an extra €100 for each child this year, but this will have to be offset against the child benefit, meaning that there will not be much left over for households. The government has also increased housing subsidies for those in need, but this is being offset by rising food prices.



energy prices, energy sector, germany