Households receive hundreds of euros compensation for rising energy prices

The government allocated some EUR 3 billion for measures to compensate for the higher consumer energy bills by rising gas prices. That money goes to a reduction in energy taxes, among other things.

Demissionary Secretary of State Yesilgรถz: โ€œWe are going to significantly lower the energy tax, 230 euros for the part in the gas bill. But the higher gas prices also increase the price of electricity. We also lower the rate there. That amounts to an average of around EUR 400 per household on average.โ€ Exactly how much it is depends on individual circumstances.

There will also be an additional 150 million euros for home insulation. Municipalities can distribute that in the form of vouchers to people in poorly isolated homes. With those vouchers, they can buy air strips from hardware stores, or energy meters where you can instantly see your consumption. Ultimately, municipalities can decide how they want to spend the grants in their city.

Of the EUR 3.2 billion allocated to the measures, 500 million will go to small and medium-sized enterprises. They too are going to pay less energy taxes. The tax cut for consumers and SMEs will begin on January 1, 2022 for the duration of one year.

Compensation for everyone

The cabinet has been thinking about compensation schemes that would end up particularly with lower-income households. Now there will be compensation for everyone.

โ€œPrecisely because we have opted for a broad measure, a part will also end up with people who dont need it,โ€ says Yesilgรถz. โ€œBut it had to be good and fast feasible, a more complicated measure takes too much time.โ€

Rising gas prices mean that the energy bills are threatening to increase by tens of euros per month on average over the winter. Some energy companies have already increased prices to 60 percent for some of their customers.