The people in Germany feel the consequences of the Russian war of aggression in their wallets. Energy costs in particular are rising rapidly. Although the citizens should be relieved – but there remains a gap.
Despite the Federal Government’s planned relief package, the rising energy costs are a considerable burden on citizens, according to calculations by the comparison portal Verivox and the taxpayers’ association.
According to this, the annual energy costs for a model household of four with two children between April 2021 and 2022 increased by 2408 euros to 6269 euros. This corresponds to an increase of 62 percent.
This Friday, the Federal Council is to deal with the relief package to cushion rising energy prices. According to Verivox, this compensates for the price increases for the sample family with 1035 euros, i.e. not even by half. The calculation is based on the April energy prices, which are assumed for the entire year 2022. Relief such as the abolition of the EEG surcharge, which is not due until July, will only be taken into account proportionately.
Finance Minister Christian Lindner (FDP) and Economics Minister Robert Habeck (Greens) emphasize that the state cannot completely absorb the economic consequences of Russia’s war of aggression against Ukraine, but can only mitigate them.
“All types of energy are scratching their all-time highs”
“The consequences of the corona pandemic and the Russian attack on Ukraine have pushed energy prices up sharply worldwide. Whether electricity, gas, heating oil or fuel: all types of energy are scratching their peaks or have even exceeded them,” said Verivox energy expert Thorsten Storck of the German Press Agency.
In cooperation with the taxpayers’ association, Verivox has evaluated those projects that have a direct impact on the costs of heating, electricity and fuel. The energy price lump sum for employed persons of 300 euros, the 200 euro increase in income-related expenses, the one-time bonus of 100 euros per child, the elimination of the EEG surcharge from July, the three-month reduction in the energy tax on fuel and the increase in the basic allowance were taken into account .
According to Verivox, heating oil customers in particular are suffering from the price trend with an increase of 144 percent, and gas prices have doubled over the course of the year. Electricity prices increased by 30 percent over the year, petrol by 35 percent and diesel by 56 percent.
Model family: 4000 kWh electricity consumption, 13,300 km on the road
For the calculations, Verivox assumes a family of four with an annual heat requirement of 20,000 kilowatt hours (kWh), an electricity consumption of 4000 kWh and an annual mileage of 13,300 kilometers. The average prices for electricity and gas correspond to an index that includes the prices of the local basic suppliers and 30 national providers. The tax bill comes from the Association of Taxpayers.
The taxpayers’ association has made further demands for tax relief for citizens than previously planned. “The government must make significant improvements and adapt the 2022 income tax rate to inflation in such a way that the tax authorities do not become inflation winners,” demanded the President of the Taxpayers’ Association, Reiner Holznagel. In the opinion of the association, the tax classes should be changed in such a way that higher rates only become due if the income is higher than before.