A surge in fuel prices leads to an increase in household bills in Germany

Amidst the rise in energy prices last year due to the war conflict between Russia and Ukraine, many received various pieces of advice on coping with the situation: taking cold showers, turning off water when not needed, and lowering the heating temperature.

Afterward, politics came up with solutions to assist, and now it’s time to demonstrate the effectiveness of all that, as monthly consumption bills began to gradually decrease.

Many consumers now receive their annual consumption bills, and it is expected that some of them will come with substantial amounts that must be paid. The concerned parties advise those affected to carefully examine the bills to ensure accuracy and credibility.

Despite the assistance of energy subsidies and the imposition of restrictions on electricity and gas prices, they will not be sufficient to offset the significant increases in bills.

A wave of fuel price increases leads to a rise in household bills in Germany

Tenants expect consumption bills to be more costly this year compared to previous years, but few will be as pleased as the residents of the public housing company in Magdeburg (Wobau).

As expected by the company’s manager, Anya Moulkaw, the majority of tenants were found to have a positive balance, as she stated:

“We are fortunate here in Magdeburg, where 70% of our units rely on central heating, and the associated heating costs have had a lesser impact compared to places that depend on gas as an energy source.”

The company Wobau receives central energy from a waste-to-energy conversion plant, with a very low proportion resulting from gas. The deposits for monthly expenses have been increased.

However, this example of Wobau is considered an exception according to the energy advisor program at the Consumer Association of Saxony-Anhalt, Birgit Holvert.

Holfert states that the annual bills for consumers are now being recorded. Furthermore, she adds:

“Apologies for saying this, but there are expected to be relatively large surges, due to the fact that most people have not increased their prepaid consumption levels.”

The cost of rising energy prices in the past year is currently having a significant impact, and this could lead to “additional payments amounting to hundreds or even thousands of euros.”

On its part, the Tenants’ Union in Magdeburg (Mieterverein Magdeburg) advises tenants to carefully examine their invoices, seek legal assistance, and scrutinize documents in case of any uncertainties.

Florian Bau, the spokesperson of the German Tenants’ Association in Saxony (Deutscher Mieterbund), agrees with this advice, and he also attests to a significant increase in costs.

Since March, tenants have started receiving the invoices for the period from October 2021 to September 2022, and they say:

“This is a non-feasible matter, as it was the period during which fuel costs increased significantly, and at the same time, December aids have not been operational until now. Of course, gas price brakes will not work, as they will not be effective until January 2023.”

This is the time when deficiencies are uncovered if prepaid consumption credits are not increased. As a result, they are now facing bills amounting to hundreds of euros, and in some extreme cases, they received a bill today worth 1800 euros. This is the current situation expected.

Stephen Yackle, the CEO of WID Housing Company in Dresden, agrees that consumption costs have risen, and he says:

“We expect a 50 percent increase, which means there is a moderate compensation that can be achieved through participation in the energy assistance program, but certainly not in full.”

Regarding the municipal housing company in Erfurt (Kowo), it was clarified that 43 percent of last year’s consumption bills have already been sent out, with over half of the tenants receiving invoices for heating costs, averaging over 300 euros.

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