“The levy is a consequence of Putin’s illegal war of aggression against Ukraine and the artificial energy shortage caused by Russia,” Economy Minister Robert Habeck told reporters in Berlin. The government is working on a compensation package for consumers, because the levy presents a “challenge“ to them, Chancellor Olaf Scholz said in Oslo after a meeting with Nordic counterparts.
The levy comes as Europe shifts its focus to curbing consumption in the face of a worsening energy crisis. German power prices climbed to a record amid mounting concerns the region may struggle to generate enough electricity this winter. That has pushed up inflation rates and threatened the industry.
Habeck said the levy -- which runs through April 1, 2024 -- would cost an average single household about 97 euros a year, a couple would pay about 194 euros more and a 4-person household would bear extra costs of about 290 euros.
The Netherlands natural gas future was up another €10 today as it extends the acceleration. The measures underway to ensure Europe has enough gas for the winter are totally dependent on Russia continuing to supply the region. It is in their interests to pick the most inconvenient time possible to turn off the tap. With the war in Ukraine finely balanced, Russia will be keen to gain whatever benefit they can from asymmetric tools.Click HERE to subscribe to Fuller Treacy Money Back to top