A government-appointed expert panel has recommended a phased, two-stage cap on energy prices.
Grimm, an economist on the panel, noted that Germany needs to save 20% gas to avoid a gas shortage in winter. “This is a balancing act,” conceded Russwurm, BDI industry association chief.
“On the one hand, maintaining incentives to save, on the other hand, securing competitiveness through curbed gas prices, fighting recession and, above all, securing production sites in Germany,” Russwurm added.
Under the scheme, the German government would cover consumer gas bills for December.
Following this, from March 2023 to April 2024, private households would pay € 0.12/KWh for the first 80% of last year’s use of gas.
Industry, meanwhile would from January 2023 until April 2024 pay €0.07/KWh for the first 70% of last year’s use. It is expected that the measures may cost the German state approximately €91bn with €66bn going towards supporting consumers (including SMEs) and €25bn going towards supporting industry.
Adapted from an article in Euractiv.com
