Energy bills are rising in Europe - here's what countries are doing to help consumers pay them

Inflation has caused a cost-of-living crisis across Europe and governments are stepping in to try to protect households and businesses from the seemingly never-ending rise in energy prices. For many families these days, it seems like paychecks are "evaporating instantly" as inflation drives up the cost of groceries...

Inflation has caused a cost-of-living crisis across Europe and governments are stepping in to try to protect households and businesses from the seemingly never-ending rise in energy prices.

For many families these days, it seems like paychecks are "quickly evaporating" as inflation drove up the cost of groceries and fuel, with landlords raising rents and utility bills continuing to rise.

According to Euronews, inflation rose to a new historic high of 8.9 percent in July in Europe for the 19 countries linked to the Euro, driven by rising energy costs.

There is even no sign of the energy crisis improving any time soon, as Europe braces for the possibility that Russia will completely cut off its gas supplies in retaliation for Western sanctions over its invasion of Ukraine.

In one of the bleakest warnings yet, Belgian Prime Minister Alexander De Croo said Europe could face up to 10 hard winters as a result of the lockdown.

European Union member states are primarily responsible for their own 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 in this regard:

United Kingdom

The UK has a price cap for "home energy contracts", but bills have risen nonetheless.

For most British households, energy bills are predicted by analysts to rise to around £3,500 (€4,136) a year.

The most pessimistic forecasts amount to £6,000 (€7,090) a year.

The government earlier this year promised a £400 (€473) energy bill rebate for every household, which will either be paid directly into accounts that have an automatic payment set up to their energy provider, or that can to be requested separately by families.

Families already struggling to meet the cost of living and already in receipt of government benefits will also receive a one-off 'cost of living' payment of £650 (€768) on top of the £400 rebate and pensioners will receive a additional payment of £300 (€355) this winter.

Disabled people will also receive a £150 (€177) allowance to cover the increased cost of living.

Ital

Italy approved in early August a new aid package worth about 17 billion euros to help protect firms and households from rising energy costs and rising consumer prices.

It comes on top of around €35bn budgeted since January to tackle 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 receive it before.

Italy has also announced its intention to tax companies that profit from higher energy prices and is promoting a cap on gas prices at the European level to help curb price rises.

Spain

Like Italy, Spain has decided to tax those energy companies that profit from rising energy prices and use the money collected to help its citizens pay their bills.

Madrid has already cut value added tax (VAT) on energy bills from 21 percent to 10 percent, while also reducing an existing electricity tax from 7 percent to 0.5 percent.

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

France

France is also offering a one-off payment to its citizens to help them get through tough times, although at just €100 this is significantly lower than in the UK and Italy.

But France has "centered the game at the source", forcing state energy provider EDF to limit wholesale electricity price increases to 4 percent for a year.

The move is expected to cost 8.4 billion euros.

Denmark

In June, Danish lawmakers agreed to a cash grant for the elderly and other measures totaling 3.1 billion Danish kroner (417 million euros), including a cut in a tax on energy prices.

Parliament has also approved a so-called "heating cheque" worth 2 billion Danish kroner (269 million euros) to be paid to more than 400,000 families hit hard by rising energy bills.

Germany

Germany, which has struggled to curb its heavy dependence on Russian gas, has pledged to cut the value-added tax on natural gas from 19 percent to 7 percent by the end of March 2024.

Germany also approved two aid packages totaling 30 billion euros to help its citizens with rising energy prices this year.

The German government will offer a one-off flat fee of €300 to all taxpayers, which will be transferred to them via their employer's pay slip.

Families receiving child support will receive an additional €100 per child, while people on benefits will receive a €200 payment.

Those receiving housing assistance will receive an additional €270 for people on housing assistance.

The country is also offering subsidized public transport tickets, Telegraph reports.

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

Netherlands

The Dutch government, which expects inflation to reach 5.2 percent this year, is offering eligible households a one-off energy allowance of €800.

This country is also reducing the VAT on energy from 21 percent to 9 percent and reducing the tax on gasoline and diesel by 21 percent, a limit which will remain in force until the end of the year.

Greece

Greece has spent around 7 billion euros in energy subsidies and other measures since last September to help households, businesses and farmers pay their electricity and gas bills.

Subsidies "absorb" up to 90 percent of the increase in monthly energy bills for households and 80 percent of the increase for small and medium-sized firms.

Norway

As energy market prices rise worldwide, Norwegians will only pay a certain amount set by the government last year.

Under a scheme introduced by the government in 2021, Norwegians pay bills in full only when prices are below 70 kroner (7 euros) per kWh.

When energy bills exceed that threshold, the government covers 80 percent of the total.

Despite this, Norwegians are apparently still struggling to pay their bills and the government is considering other options to help families this winter.

Bulgaria

Bulgaria approved in May a package worth 1 billion euros aimed at protecting companies and consumers with low incomes from the increase in energy and food prices caused by the conflict in Ukraine, writes Euronews, Telegrafi.

Since July, the government is also offering a discount of 0.25 leva (0.13 euros) per liter of gasoline, diesel and LPG until the end of the year, and removing excise duty on natural gas, electricity and methane.

finland

Finland's government said on September 4 that it plans to provide up to 10 billion euros in liquidity guarantees to the energy sector to help prevent a financial crisis.

"The government's program is a last-ditch financing option for companies that would otherwise be threatened with bankruptcy," Finland's prime minister, Sanna Marin, said at a press conference.

Hungary

Hungary has capped retail fuel prices at €1.19 per liter since November, well below current market prices.

The move led to such a surge in demand that the government was forced to curb eligibility for the scheme.

Sharp increases in gas and electricity prices have also forced the government to cap a years-old cap on retail utility bills, setting the cap at average national consumption levels, with market prices applied above that.

Hungary has also imposed a fuel export ban and recently relaxed logging regulations to meet growing demand for solid fuels such as firewood.

poland

Poland has announced tax cuts on energy, petrol and basic food items, as well as cash for households.

It also extended regulated gas prices for households and institutions such as schools and hospitals until 2027.

The government in July agreed a one-off payment of €633 to households to help cover the rising cost of coal.

Prime Minister Mateusz Morawiecki has said that the total cost of curbing energy prices in Poland will reach around 50 billion zlotys.

Romania

Romania's coalition government has implemented a scheme capping gas and electricity bills for households and other users up to certain monthly consumption levels, and compensating energy suppliers for the difference.

The scheme will be in force until March 2023.

Prime Minister Nicolae Ciuca estimated in February that the support scheme would cost around 3 billion euros, but analysts now expect it to exceed 10 billion euros.

Sweden

Sweden has set aside 6 billion Swedish kroner (559 million euros) to compensate households worst hit by rising electricity prices.

Prime Minister Magdalena Andersson said on September 3 that Sweden will offer several hundred billion Swedish kroner in liquidity guarantees to energy firms to help avoid a financial crisis after Gazprom shut down the Nord Stream 1 gas pipeline. /

Telegraph

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Energy bills are rising in Europe - here's what countries are doing to help consumers pay them