The German government has introduced a number of financial measures to support both private and business energy consumers in covering costs. Among these is a price cap for electricity prices, which will be valid from January 2023. For households and small businesses, the cap is for 80 percent of their average consumption. For mid-size and large businesses, the cap refers to 70 percent of electricity consumed the year before. Germany is also planning a gas price cap. Both limits will be valid from January 2023.
Use of heating in private households varies depending on the type of building consumers are residing in, how easily cold penetrates, how densely built up the area of residence is, and the local climate in a given region. Heating bills for private households in Germany went through several ups and downs in the last decade, but generally showed an upward trend, adding to other rising consumer costs due to ongoing inflation in the country. As of 2020, the average German household spent 882 euros per year on heating and hot water. A few years earlier, heating bills exceeded 1,000 euros.
Similarly, household electricity prices also show increasing figures year after year. In 2022, households on a basic supplier contract paid almost 36 cents per kilowatt hour, compared to around 34 cents per kilowatt hour the year before. The basic supplier, Grundversorger in German, is the largest electricity provider in a respective area supplying the highest number of households.