When will people in Germany get their December gas bill payout?
The energy relief measures have been coming thick and fast in Germany lately. Following two earlier relief packages that included tax breaks and a €300 payout for German workers, the government has been fleshing out plans for a gas and energy price cap that will be rolled out for households and businesses next year.
On Wednesday, the cabinet also green lit proposals for a bridging measure to assist with high energy costs this year. The move will see the state covering gas bills for households and small businesses for the month of December.
The idea originally came from the recently established Gas Price Commission, a panel of experts that was set up to advise the government on potential relief measures.
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It will affect some 20 million gas and district heating (i.e. Fernwärme) customers across Germany.
How much money will people get?
The amount people will receive will depend on their previous gas usage. The government will calculate the payout for December’s bill based on the bill for September 2022. This amount will reflect a household’s average monthly usage throughout 2021.
It means that a larger household is likely to get a heftier payout than a smaller household, and that people who saved energy in 2021 will also receive less than people who were less cautious about their usage.
People who pay their gas bills directly should be able to find out how much they’re entitled to by referring to their previous bank statements or looking at their energy provider’s online portal.
A gas customer reads their latest bill. Photo: picture alliance/dpa/dpa-tmn | Christin Klose
Under the timeline set out by the government, suppliers will need to determine the amount of money that the state should reimburse by mid-November. They will then need to make this information available on their websites by November 21st.
It’s also worth noting that, unlike measures such as the €300 one-off payment to workers in September, the gas bill payment won’t be subject to taxation.
“The taxation of the discount was waived after examining the various implementation options, taking into account, among other things, the bureaucratic burden,” a government paper published on Wednesday explained.
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How will it be paid out?
For tenants who pay for their bills through their Nebenkosten (additional charges), the relief for December should be passed on in the form of a credit or reduction in warm rent from their landlords.
Specifically, the government says landlords should factor any over payments in December into the calculation of next year’s Nebenkosten.
Tenants who have already received an increase in their advance service charge payment in the last nine months, and tenants who have signed a new lease with higher service charges in the last nine months, will be able to withhold a portion of their advance service charge payment in December – or they will receive that portion as a credit in the 2022 service charge statement.
For home owners and businesses who pay their bills directly to their providers, the payment will be made in the form of a discount to the December bill.
Is it still worth saving energy in December?
The government has stressed that it still makes sense to save energy in spite of the cost reduction.
That’s because the amount of relief people will get in December is based on previous usage, rather than actual usage. If people reduce their consumption by 20 percent, for example, they’ll not only get their monthly payment waived but will also receive deductions on future bills as well, or a credit from their gas provider.
What kind of businesses are eligible for support?
Along with households that use either gas or district heating, small and medium-sized enterprises that consume less than 1.5 million kilowatt hours of gas per year will have their December installment payment waived.
A number of other non-profit organisations are also eligible for aid. These include approved care, preventive care and rehabilitation facilities, state or non-profit educational, scientific and research institutions, and workshops for people with disabilities.
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What are the next steps?
Following the cabinet’s agreement on the December payout, the Bundestag and Bundesrat are expected to approve the measure on December 10th and 11th respectively.
Gas suppliers will then have until mid-November to determine the amount of the discount and until November 21st to post this information on their websites. They should then receive the payment from the government on December 1st.