Energy bills are soaring in Europe EU debates to help you pay them! #Gas #repowereu

Spiralling inflation has sparked a cost-of-living crisis across Europe, and governments are stepping in to try to shield households and businesses from the seemingly never-ending surge in energy prices.

#eudebates the unique initiative aiming to promote debate, dialogue, knowledge, participation and communication among citizens. #RepowerEU #Ukraine #VonderLeyen #EUROPE #Gas #Energy #war #inflation #prices #european

For many families these days, it feels like paycheques are immediately evaporating as inflation drives up the cost of groceries and fuel, landlords increase rent and utility bills keep soaring.

Inflation in the eurozone jumped to a new all-time high of 9.1 per cent in August, fueled by rising energy costs.

There’s no sign of the energy crisis improving any time soon, as Russia said this month it would not fully resume its gas supplies to Europe until the West lifts the sanctions it imposed on Moscow over its invasion of Ukraine.

Belgian prime minister Alexander De Croo has warnedEurope could face up to 10 difficult winters as a result of the standoff. European Union member states are largely responsible for their national energy policies, and EU rules allow them to take emergency measures to protect consumers from rising costs. Here’s a look at what governments across the continent are doing to help.

Italy
Italy approved in early August a new aid package worth around €17 billion to help shield firms and families from surging energy costs and rising consumer prices. It comes on top of some €35 billion budgeted since January to fight the cost of living crisis.

A draft seen by Reuters showed the government would extend a €200 bonus paid in July to low and middle-income Italians who did not previously receive it.

Italy has also announced its intention to tax companies profiting from higher energy prices and is promoting a cap on gas prices at a European level to help contain price spikes.

Spain
Like Italy, Spain has decided to tax those energy companies profiting from the increase in energy prices and use the money raised to help its citizens pay the bills.

Madrid has already cut value-added tax (VAT) on energy bills from 21 per cent to 10 per cent, while also cutting an existing tax on electricity from 7 per cent down to 0.5 per cent.

Like Portugal, Spain currently enforces a one-year long cap on gas prices, agreed by the European Commission, which ensures they remain lower than an average of €50 per megawatt-hour.

France
France is also offering a one-off payment to its citizens to help them face hard times, though at just €100 this is considerably lower than in the UK and Italy.

But France has stepped up its game at the source, moving to fully nationalise energy provider EDF and forcing it to limit electricity wholesale price rises.

The government now says it will cap power and gas price increases for households at 15 per cent in 2023. It says the average monthly household energy bill will cost an extra €20-25 as a result, compared to an extra €180-200 without such a cap.

The country’s domestic tax on final electricity consumption (TICFE) has also been curbed from €22.50 per megawatt hour to only €1 per megawatt hour for households, and €0.50 for businesses.

Denmark
In June, Danish lawmakers agreed on a cash handout to the elderly and other measures totalling 3.1 billion Danish kroner (€417 million), including a cut to a levy on power prices.

The parliament has also approved a so-called "heat cheque" worth 2 billion Danish kroner (€269 million) that will be paid to over 400,000 households hit hard by rising energy bills.

Germany
Germany, which has struggled to curb its heavy dependency on Russian gas, has pledged to lower the value-added tax on natural gas from 19 per cent to 7 per cent until the end of March 2024.

Germany also approved two relief packages for a total of €30 billion to help its citizens with rising energy prices this year.

The German government will offer a one-off energy price flat rate of €300 to all taxpayers, transferred to them via their employer's payslip. Families receiving child support will get an extra €100 per child, while people on benefits will receive a €200 one-off payment. Those on housing assistance will get a €270-worth top-up for people on housing assistance.

The country is also offering subsidised public transport tickets.

However, German households will have to pay almost €500 more a year for gas due to a new levy - to be imposed from October - helping utilities cover the cost of replacing Russian supplies.

The Netherlands
The Dutch government, which is expecting inflation to hit 5.2 per cent this year, is offering eligible households a one-off energy allowance of €800.

It's also lowering VAT on energy from 21 per cent to 9 per cent and cutting duty on petrol and diesel by 21 per cent, a cap which will remain in place until the end of the year.

[dukecheng]

Stop barking up the wrong tree. It's not a matter of high bill. What's important is whether there's enough gas to keep industries going and to keep warm during winter.