Households in Germany will have to pay almost 500 million euros more annually for gas after the introduction of a new tax designed to help utility companies cover the costs of replacing Russian supplies, Reuters writes.

Trading Hub Europe, the gas market operator in Germany, has announced that it has set the tax level at 2.419 Eurocents/kWh.

The tax will be introduced from October 1 and will last until April 2024 to help Uniper (the country’s largest importer of Russian gas) and other importers cope with rising prices.

For a typical family of four, the tax will mean additional annual costs of around 480 euros.

“The alternative would be the collapse of the energy market in Germany and a large part of the European energy market,” Economy Minister Robert Habeck said, referring to the new tax.

Utility company EnBW, which has also been hit by rising energy prices, has announced that it will benefit from the introduction of the tax.

The new tax will hit the industry hard as the German Steel Federation estimates it will add around 500 million euros a year to the sector’s energy bills, on top of the 7 billion euros in extra costs already caused by higher energy prices.

Economists warn that the tax will accelerate inflation in Europe’s largest economy, which has already peaked at 8.5%.

Germany has tried to avoid a situation where consumers pay for higher energy costs. But the pressure facing utilities has forced the Berlin government to change its approach in trying to cut consumption and prepare for the winter season amid fears that Russian President Vladimir Putin could cut off gas supplies entirely. (Source: Agerpress)