System fees in Germany are expected to rise by an average of 20.4 per cent in 2023, according to a survey by a price comparison portal. Increased utility costs are not only affecting household consumers, but also driving up the prices of essential goods. Meanwhile, people's propensity to consume fell to a historic low this September.

According to a study by the comparison portal Verivox, system usage fees could rise by an average of 20.4 per cent nationwide next year.

However, the burden on consumers will vary greatly from region to region. The biggest increase of around 52 per cent – which translates into a 208-euro surcharge on electricity bills – is expected in Mecklenburg-Western Pomerania. In Brandenburg, system charges could rise by 48 per cent (around 182 euros), and by 30 per cent (79 euros) in Berlin.

According to calculations, a family of three pays 2,153 euros per year for 4,000 kilowatt hours of electricity in October. With increasing system charges, costs could rise to an average of 2,227 euros next year, the figures suggest.

However, it’s not just utility prices that are making Germans dig deep into their pockets, with producer prices continuing to rise at record rates. In September, just as in August, they rose by 45.8 per cent on average compared to a year earlier.

“This means that in August and September 2022, we measured the highest producer price increases since the survey began in 1949,”

the Federal Statistical Office says. Price hikes are triggered by the extremely high energy prices. The industrial sector paid more than three and a half times as much for natural gas in September as in the same month last year. In addition, prices for intermediate goods (+16.8 per cent) and capital goods (+7.8 per cent), as well as durable and non-durable consumer products (+10.9 and +18.3 per cent) also rose significantly, partly as a result of the soaring energy prices.

Food prices rose by nearly a quarter compared to the same month last year. The price of butter (+72.2 per cent), pork (+46.3 per cent), cheese, curd cheese (+39.7 per cent) and milk (+37.5 per cent) rose particularly sharply. Coffee prices were up by 32 per cent.

It is not only the soaring price of essential goods that gives customers a headache, but also the growing number of stores and shops that have decided to limit their opening hours in order to curb their energy costs. The discount store chain Aldi Nord has recently announced that it will soon shorten opening hours at numerous branches in a bid to skimp on energy. Affected outlets will close one or two hours earlier this winter, causing a serious problem for those who work until late in the afternoon.

Als erster Lebensmitteleinzelhändler in Deutschland passt #ALDI Nord die Öffnungszeiten zahlreicher Märkte an und leistet damit aktiv einen Beitrag zum Energiesparen. Ab 01.11.22 schließen diese Märkte um 20 Uhr. Dies gilt zunächst für die Winterzeit 2022/2023. #ALDInews pic.twitter.com/UrOrj7Zigf

— ALDI Nord (@ALDINord_Presse) October 18, 2022

Consumers’ propensity to buy has dropped to an all-time low due to the uncertain economic situation and increased expenses, a survey by the German Retail Federation (HDE) found. The study also indicates consumers’ potential spending planned for the coming weeks and months. Retailers can anticipate extremely difficult weeks, especially during the Advent period, as far fewer people will be able to afford a Christmas shopping spree than in previous years, HDE projects.