German households to pay more for gas under levy

German households will have to pay hundreds of pounds more a year for gas under a levy to help energy companies cover the cost of replacing Russian supplies.

The levy, which will be imposed from 1 October and will remain in place until April 2024, will be accompanied by additional support for households.

The EU says it will cut gas imports from Russia by two-thirds within a year, but it has stopped short of a total ban.

An average gas bill of €3,568 a year will result in an additional annual cost of around €480 $489 for an average family of four.

Businesses will be subject to the levy, and the Federation of German Industries has called for more support.

The collapse of the German energy market and with it large parts of the European energy market would have to be the alternative, he told reporters.

The German government has introduced subsidies for low-income households and is now spending more than 15 billion on fuel subsidies through a reduction of petrol and diesel taxes, giving people one-off €300 pay-outs, extra child support and public transport discounts.

In June, Germany introduced measures including dimming street lights, turning off fountains and lowering the temperatures in swimming pools.

Russia tried to justify the cut by saying it needed to allow maintenance work on a turbine, but the German government said there was no technical reason for it to limit the supply.