Germany's Gas Prices to Soar by 23% in 2025: Households Face Higher Costs Amid Economic Concerns
October 22, 2024Starting in 2025, gas prices in Germany are projected to rise significantly due to new government depreciation regulations that will increase gas network fees.
The average increase in gas network fees is expected to be around 23%, translating to an additional cost of approximately 116 euros annually for the average household.
For households using about 20,000 kWh annually, this means yearly costs will rise from approximately 2,248 euros to about 2,351 euros.
These rising fees are a result of new depreciation rules set by the Federal Network Agency, which allow gas network operators to incorporate potential network shutdowns into their pricing.
As the number of customers sharing the maintenance costs of gas infrastructure decreases, individual prices are expected to continue escalating.
A business association has warned that the increasing gas costs, coupled with a rising CO₂ price, could have severe implications for Germany's economic landscape.
The current energy transition is being described as a script for economic destruction, leading to rising insolvencies and business relocations.
The BDI has highlighted that the slow implementation of state measures and conflicting regulations are hindering the transition to hydrogen power.
In response to these challenges, the BDI encourages individuals to invest in climate-neutral technologies, such as electric vehicles and home renovations, to stimulate economic growth.
Despite the fee increases, consumers have the option to search for cheaper gas suppliers, potentially saving over 1,000 euros annually by switching providers.
Regionally, consumers in western states will also face significant cost increases, with Niedersachsen seeing a 30% rise, Bremen 29%, and Baden-Württemberg 24%.
The new federal states will experience the most substantial fee increases, with Saxony-Anhalt seeing a 43% rise, Brandenburg 39%, and Saxony 34%.
Summary based on 2 sources