Despite high increases, many households pay their heating costs as a deduction from the operating costs – and this could give them the false sense of security, Veronika Grimm fears.
“Wirtschaftswise” Veronika Grimm considers more incentives for tenants to save energy necessary. Grimm told the German Press Agency that the heating cost deductions for the operating costs would have to be adjusted to the sharply increased price level in a timely manner. “This is how the signal to save gas is already getting through to the tenants.” In return, low-income households would need more relief.
The amount of the state gas levy is to be announced on Monday. Economics Minister Robert Habeck (Greens) said he expected “several hundred euros per household” per year. The surcharge is intended to benefit gas suppliers who have to buy a replacement for the lack of cheaper gas volumes from Russia at high prices.
Grimm said it can be assumed that half of the 20 million households that heat with gas will pay the utility bill. However, the deductions were based on the billing for 2021 and would turn out to be far too low. “By the time this becomes clear during the billing in the summer of 2023, the winter will be over. It is fatal that consumers have no visible incentive to save gas as a result, but ex post – with the billing that will take place in 2023 – from the caught off guard at high cost.”
Predictive adjustment not possible
At the same time, landlords ran into liquidity problems: “Because the gas procurement costs are high, but the current discounts do not reflect them in any way. Legal regulations prevent the landlord from being able to adjust them in advance – at least the tenant would have to agree. But that usually happens Not.”
Grimm sees an urgent need for action for politicians. First of all, the landlords should be obliged to regularly inform the tenants about consumption and expected costs. “This is already happening in some cases, but by no means everywhere. The tenants need information on how to save gas. Many people read and bill their individual gas consumption, so you could also work with tenants with bonuses for extensive savings.”
Grimm also spoke out in favor of levying VAT on the gas surcharge. In return, however, those who cannot bear the hardships caused by increased prices would have to be compensated. “Not to levy VAT would again be a compensation with the watering can, similar to the tank discount. But it shouldn’t be about relieving upper income,” said Grimm. “It is important that the levy reaches consumers directly so that it triggers an incentive to save gas. Many may already be aware, but others are not.”
Finance Minister Christian Lindner (FDP) and Economics Minister Habeck want to prevent VAT from being due on the gas surcharge. According to the Ministry of Finance, such exceptions are not provided for in European law.
Grimm is a member of the Advisory Council for the Assessment of Overall Economic Development (“Economy”) and holds the Chair of Economics at the University of Erlangen-Nuremberg.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
