Gas bills set to go down in Germany with scrapping of surcharge

Consumers in Germany can look forward to slightly lower utility bills in the coming year, thanks to the federal government’s plan to abolish a levy on gas. Here’s what’s happening and how much you can expect to save. 

German government to scrap gas storage levy

The federal government has announced its intention to abolish the gas storage levy (Gasspeicherumlage) for businesses and private consumers. The Gasspeicherumlage was initially introduced during the energy crisis in 2022 to help fill Germany’s gas storage facilities when prices skyrocketed, and has pushed up prices for households and businesses. 

Under the new plan, the federal government will absorb the 3,4-million-euro bill set aside for the scheme, instead using money from the Climate and Transformation Fund (KTF) to pay for it. This means households and businesses will no longer pay the surcharge directly.

The fact that the money is coming from the KTF has not been well-received by all quarters. The Green party, for instance, has argued that it is inappropriate to promote the use of fossil fuels using a state budget earmarked for climate transformation. 

Households can expect to save around 50 euros per year

The move should translate into savings for households across Germany, but the figures aren’t huge. Welt reports that the savings will be approximately 2,4 percent of the annual gas bill for households and small businesses, and 5 percent for those with higher usage. 

With the surcharge currently sitting at 2,89 euros per megawatt hour, you can expect to save somewhere between 30 and 60 euros per year on your gas, depending on your consumption, according to comparison portal Verivox. 

The scrapping of the surcharge is part of a wider package of measures designed to bring down energy prices for households and businesses. Grid charges are also being reduced, and taxes on electricity for the manufacturing sector will be permanently reduced from 2026. 

However, one of the package’s cornerstone policies - a reduction in the electricity tax for everyone - has been shelved due to budget constraints. The government has argued that businesses should be given priority on energy savings in order to secure jobs and stimulate the economy, but they will face fierce opposition to this U-turn from Bundestag members.