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Too little money for electricity in Hartz IV rate

Heidelberg – According to calculations by the comparison portal Verivox, Hartz IV recipients will not receive enough money to cover their electricity costs even after the increase in the standard rates on January 1, 2021.

For people living alone, the gap amounts to an average of 95 euros per year, reported the market observers.

As of January 1, 2022, the standard rate for a single adult will increase by 3 euros to 449 euros per month. According to Verivox, 36.44 euros are intended to pay the electricity bill. The electricity costs of a single household with a consumption of 1500 kilowatt hours, however, amounted to 44.33 euros per month on a national average.

Social associations and consumer advocates have long criticized that the proportion for electricity in the Hartz IV rates is insufficient. Because of the tight rates, those affected are often not in a position to offset the high electricity costs with savings elsewhere. The rates should be geared more closely to the actual electricity demand.

Since the introduction of Hartz IV in 2005, the standard rate has increased gradually by around 30 percent, emphasized Verivox. The electricity prices would have increased by an average of 59 percent over the same period, and by as much as 80 percent for the basic supply. The gap between the electricity share in the Hartz IV rate and the actual costs has therefore grown.

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