Heating costs to rise by 1,000 euros for German homeowners even after deducting state support

Homeowners with gas heaters in Germany on average will be paying about 1,000 euros more for heating energy this year, even after state measures to reduce bills have been accounted for, energy non-profit consultancy co2online said. Government support programmes, such as a reduced value added tax (VAT) on gas and direct support payments in December 2022 would reduce the bill for houses with a living space of 110 square metres by about 210 euros, the consultancy’s calculations showed. Households living in 70 square metre flats will be paying 530 euros more on average, while the state measures deduct 120 euros from their bill. Gas heating costs will generally rise by 65 percent and reach a new record level in the country. The prices rise will reach 54 percent for oil heating, 70 percent for wood pellets and 75 percent for heat pumps, co2online said. Tanja Loitz of co2online called the price rises “alarming” for customers, arguing that energy efficient modernisation is the best way for households to avoid skyrocketing prices. “In the long run, only energetically retrofitted buildings with heating systems based on renewable energy can protect customers from these kinds of costs,” Loitz said. A proper retrofitting could save homeowners about 2,000 euros per year and reduce bills for flat dwellers by 1,000 euros.

Rising energy prices and general inflation in Germany and many other countries fuelled by Russia’s war on Ukraine have led to great worries about rising social tensions and hardships during the winter. The government has sought to alleviate the impact of the energy crisis on households and businesses with a slur of support measures worth hundreds of billions of euros.