Germany’s Economy Minister announces changes to the gas levy

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The economy minister of Germany, Robert Habeck, has warned about an increase in energy prices during winter. The government official said that the ongoing market conditions would cause this increase. Gas prices have been skyrocketing in Europe because of the rising inflation and the events surrounding the Russian invasion of Ukraine.

Germany’s economy minister warns of rising gas prices

Habeck spoke to Berlin reporters, saying that the government was actively monitoring the situation and taking measures to prevent any potential gas crisis. The official also said imposing a new levy on natural gas was necessary.

The official said that there would be a rise in energy prices during the winter. This increase would make people see the current discussions held by the government because the situation was dire.

Habeck has also said that despite the criticism witnessed because of these changes imposing the gas levy was necessary to ensure that the energy companies in financial turmoil do not file for bankruptcy. The levy would also guarantee the security of gas supplies in Europe.

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Habeck has also rejected any proposals that call for abolishing this levy. However, he has said there could be changes to the original plan regarding the levy because some critics have said that profitable energy companies would benefit immensely from these changes.

Energy bills in Great Britain to increase from October 1

Household energy bills in England, Wales, and Scotland will increase from October 1. Ofgem, the electricity and gas regulator, has increased the maximum amount that suppliers can charge consumers.

The decision by Ofgem says that suppliers can charge up to £3,549 annually for heating and electricity. The figure is an 80% increase from the current cap of £1971. The regulatory body will also revise the price cap again in January, reflecting the volatility of the broader cryptocurrency market.

Ofgem’s decision has faced much criticism from citizens who expect the government to launch measures to assist households in surviving in the upcoming winter months. The chief executive at Ofgem, Jonathan Brearley, said that the declining gas flow levels to Europe from Russia and the skyrocketing global prices were the reasons behind raising the price cap.

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