Lower household gas prices in Germany could come into effect 'starting in February'
To deal with spiralling energy costs, a gas price cap could come into effect as early as February, according to a new draft proposal to be discussed on Wednesday.
The German government in October announced a €200 billion relief package to help support private households and companies with skyrocketing energy prices.
As part of the plans, a gas price cap is set to come into force in Germany in the spring of 2023, limiting the amount that people pay to use gas.
But now the government wants to partially close a “winter gap” until the planned gas price brake for households takes effect. The new plan, set to go in effect March 1st, would "provide retroactive relief as of February 1st," according to a federal government paper released Tuesday.
As part of the €200 billion package, the government is set to provide assistance to pay private gas bills as of December.
READ ALSO: EXPLAINED: How Germany plans to pay people's gas bills starting in December
How much will gas prices be capped?
According to the draft proposal, all consumers will receive a capped gas price of twelve cents per kilowatt hour for 80 percent of their current consumption by March at the latest. The normal contract price will apply to anything above that.
A gas price brake is also planned for industry, starting in January. These large consumers are to receive a guaranteed price of seven cents per kilowatt hour net for 70 percent of their previous consumption volume, which will then have taxes and levies added on.
The industrial gas price brake is to apply to about 25,000 companies and 1,900 hospitals.
Electricity price brake starting in January?
Starting at the beginning of 2023, an electricity price brake is also set to take effect. As with the gas price brake, a basic quota of 80 percent of the previous consumption is to be made available for households for a gross price of 40 cents per kilowatt hour.
According to the comparison portal Verivox, the nationwide electricity price currently averages 48.16 cents per kilowatt hour.
Industrial companies are also set to be included in the electricity price break, receiving a guaranteed net price of 13 cents per kilowatt hour for a basic electricity quota of 70 percent of historical consumption.
If passed, the new proposal would also provide €12 billion for a "hardship scheme". It is to take effect where, despite the electricity and gas price brake, the burdens "cannot be compensated by those affected," the paper stated.
Up to €8 billion of this is to go to hospitals and care facilities alone, which are particularly affected by energy costs.
READ ALSO: How renters in Germany could get help with rising heating costs
Vocabulary
draft proposal - (die) Beschlussvorlage
take effect - greifen
burden - (die) Belastung
data/information - (die) Angaben
Follow-up solution - (die) Nachfolgelösung
We’re aiming to help our readers improve their German by translating vocabulary from some of our news stories. Did you find this article useful? Let us know.
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The German government in October announced a €200 billion relief package to help support private households and companies with skyrocketing energy prices.
As part of the plans, a gas price cap is set to come into force in Germany in the spring of 2023, limiting the amount that people pay to use gas.
But now the government wants to partially close a “winter gap” until the planned gas price brake for households takes effect. The new plan, set to go in effect March 1st, would "provide retroactive relief as of February 1st," according to a federal government paper released Tuesday.
As part of the €200 billion package, the government is set to provide assistance to pay private gas bills as of December.
READ ALSO: EXPLAINED: How Germany plans to pay people's gas bills starting in December
How much will gas prices be capped?
According to the draft proposal, all consumers will receive a capped gas price of twelve cents per kilowatt hour for 80 percent of their current consumption by March at the latest. The normal contract price will apply to anything above that.
A gas price brake is also planned for industry, starting in January. These large consumers are to receive a guaranteed price of seven cents per kilowatt hour net for 70 percent of their previous consumption volume, which will then have taxes and levies added on.
The industrial gas price brake is to apply to about 25,000 companies and 1,900 hospitals.
Electricity price brake starting in January?
Starting at the beginning of 2023, an electricity price brake is also set to take effect. As with the gas price brake, a basic quota of 80 percent of the previous consumption is to be made available for households for a gross price of 40 cents per kilowatt hour.
According to the comparison portal Verivox, the nationwide electricity price currently averages 48.16 cents per kilowatt hour.
Industrial companies are also set to be included in the electricity price break, receiving a guaranteed net price of 13 cents per kilowatt hour for a basic electricity quota of 70 percent of historical consumption.
If passed, the new proposal would also provide €12 billion for a "hardship scheme". It is to take effect where, despite the electricity and gas price brake, the burdens "cannot be compensated by those affected," the paper stated.
Up to €8 billion of this is to go to hospitals and care facilities alone, which are particularly affected by energy costs.
READ ALSO: How renters in Germany could get help with rising heating costs
Vocabulary
draft proposal - (die) Beschlussvorlage
take effect - greifen
burden - (die) Belastung
data/information - (die) Angaben
Follow-up solution - (die) Nachfolgelösung
We’re aiming to help our readers improve their German by translating vocabulary from some of our news stories. Did you find this article useful? Let us know.
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