Gas prices: Rising costs in the coming year.


According to a comparison portal, consumers must expect gas prices to rise next year. That is caused by higher net fees and the CO2 price.

Consumers in Germany must adjust themselves in the coming year to higher gas prices. Reason are the start of the CO2-Preis as well as higher net fees, as from computations of the comparison portal Verivox results. “We expect gas prices to rise again significantly in the coming year,” said Verivox energy expert Thorsten Storck.

According to Verivox, the fees for the gas networks will rise by an average of two percent nationwide in 2021. This is based on preliminary publications of the distribution network operators. The analysis includes 84 percent of the gas supply areas.

For a sample household in a single-family home with a consumption of 20,000 kilowatt hours, this means additional costs of around 8 euros per year. However, there were large regional differences.

The gas price for household customers is made up of the procurement costs, the fees for network use and taxes. CO2 pricing for transport and buildings will start in 2021. The aim is to make fossil fuels less attractive and encourage people to switch to more climate-friendly alternatives. Emissions trading starts with a fixed CO2 price of 25 euros per ton. According to the Ministry of the Environment this means that natural gas, for example, will become 0.6 cents more expensive per kilowatt hour.

According to Verivox calculations, this means an additional burden of 108 euros per year for a model household in a single-family home. “If the utilities were to pass on the increased network fees and the CO2 price in full to their customers, the price of gas would rise by as much as around 11 percent in the coming year,” Storck said.

However, the development on the raw materials markets could have a price dampening effect. For example, wholesale prices had fallen significantly since the beginning of the year – which is why average gas prices had also fallen this year. According to Storck, the lower procurement costs provide scope for price increases not being quite as high.

The Federal Government wants to relieve the citizens with the start of the CO2 price elsewhere. Thus the commuter lump sum for employees with longer distances rises. In addition, the government has prevented a sharp rise in electricity prices by providing a billion-euro federal subsidy for the EEG levy to promote green electricity.

It is still controversial within the federal government how additional heating costs are to be divided between tenants and landlords. The SPD-led Federal Ministries of the Environment, Justice and Finance want landlords to be allowed to add a maximum of half of the additional costs that will be incurred in future when heating with oil or natural gas to the rent. Federal Minister of the Environment Svenja Schulz (SPD) had said: “It is ultimately the landlords who decide on a new heating system. Therefore they should carry also their portion of the CO2-Preis.



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