The German government said households will face additional annual natural gas costs of around 290 euros for a family of 4. The purpose of the innovation is to redistribute the burden associated with Russia's restriction of gas supplies to Europe to the entire population of the country, reports Bloomberg..

From October, consumers will have to pay an additional 2,419 euro cents per kilowatt-hour for natural gas, Trading Hub Europe said in a statement released on Monday.. Impact from temporary levy to be cushioned by subsidies for some households.

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The government is working on a compensation package for consumers as the fee is a challenge for them, Chancellor Olaf Scholz said in Oslo after meeting with Scandinavian colleagues.

Habek said the tax, which will be in effect until April 1, 2024, will cost around 97 euros per year for single household owners.. A married couple will pay approximately 194 euros and a household of four will incur an additional cost of approximately 290 euros per year.

Some consumers will be eligible for heating subsidies, Habek said.. German Finance Minister Christian Lindner said in turn that he would consider exempting businesses from sales tax in order to partially alleviate the burden.

Thus, utilities will be able to pass on to consumers the cost of compensating for missing Russian supplies from the beginning of the fourth quarter..

Germany tried to the last to avoid forcing the population to pay for higher electricity prices after the Russian invasion of Ukraine. But officials fear that Moscow could cut off gas supplies entirely, prompting the government to act..

The new tax will accelerate inflation in Germany, analysts at Commerzbank Research believe in their. According to the bank, by the end of the year the inflation rate should exceed 9%.. In July, consumer prices in the continent's largest economy jumped by 8.5% compared to last year.

Germany's largest importer of Russian gas, Uniper, is counting on the levy to help it bolster its finances after the company signed a bankruptcy bailout deal with the government.. Uniper losses are estimated at 6.2 billion. Euro.

Germany's electricity prices climb to record highs amid growing fears the region could struggle to generate enough electricity this winter. The rising cost of electricity led to an acceleration in inflation and threatened industrial production.

So far, Germany's gas storage facilities are 76% full, according to the Federal Network Agency, known as BNetzA..

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Reducing gas consumption will help determine Europe's ability to survive the winter. Incentives to reduce demand expected to be high on the region's agenda.