German households to pay €1,000 a year to replace Russian gas

GERMANS are set to pay up to €1,000 (£838) a year to help utility companies struggling with spiralling prices amid a cut-off in Russian gas supplies.

Energy companies will soon be allowed to pass on the cost of replacing Russian gas in the form of a levy approved by the government yesterday. Reports have suggested the new levy could range between 1.5 euro cents and 5 cents per kilowatt hour when it is introduced from October.

Germany is aiming to fill its gas storage facilities to 95pc by November in preparation for an escalation in the energy crisis this winter. The country’s network regulator has said the facilities are now around 67pc full.

The German government has so far stopped short of charging consumers for the upheaval in energy markets but is now exploring plans that will ease demand this winter.

Olaf Scholz, the chancellor, has reassured consumers that there will be government aid for low-income households.

Robert Habeck, economy minister, said: “The challenges we are facing are enormous and they affect significant areas of the economy and society. We can only overcome them together.”

Reuters reported the government planned to impose a levy on all gas consumers to ensure the costs of the energy crisis are spread equally between households. The move comes after Germany agreed to a €15bn bailout of energy giant Uniper.

Russia triggered another rally in wholesale gas prices this week as it restricted gas flows to Germany on the Nord Stream 1 pipeline. Gas giant Gazprom said it would slash gas delivered to Europe by 80pc in order to carry out maintenance on the pipeline.

Flows through the pipeline had already been reduced after a turbine shipped to Canada for refurbishment was not returned.

Russia has blamed Western sanctions for the dispute.