Relief: Gas price brake should apply retrospectively from January

There was a risk of a relief gap with the gas price brake. The federal government wants to stop them, it has now become known. Here’s how.

the federal government wants to close a relief gap for the months of January and February in the gas price brake planned from March. “This protects people and small and medium-sized companies from excessive price increases for the whole of 2023 and into spring 2024,” government circles said on Tuesday. The plans are now being finalized by the federal ministries and should be finally decided this week.

Gas price brake should absorb rising costs

Recently it became known that the Prices for electricity and gas will rise sharply at the beginning of next year. According to the comparison portal Verivox households have to adjust to gas prices that are on average 54 percent higher.

With the gas price brake, the federal government wants to cushion the rising costs of energy. A basic consumption subsidized by the state is planned, as is the case with the Electricity price brake. The latter should apply from January, now it looks as if this will also be the case for gas. In a first step, the federal government takes over the down payment for the month of December for the gas price brake.

“This relief bridges the time until the introduction of the gas price brake,” says the federal government. However: For many tenants, this relief is only likely to arrive in the course of the coming year with the utility bills. The federal government had already announced that the gas price brake should take effect earlier than March 1, as originally stated.

The gas price brake caps the gas price from March 2023 to April 2024 households, small and medium-sized companies as well as for care facilities, research and educational institutions to 12 cents gross per kilowatt hour. A gross price limit of 9.5 cents per kilowatt hour is planned for district heating customers. Read about this: Gas price brake: What tenants need to know

For district heating the guaranteed gross price should be 9.5 cents. A gas price brake is also planned for industry, starting in January. These large consumers are to receive a guaranteed price of 7 cents per kilowatt hour net for 70 percent of their previous consumption.

Gas price brake: incentive to save should remain

Since the suppliers are having difficulties, the gas price brake implemented before March 1, the relief amounts for January and February 2023 are to be credited retrospectively in March. After the federal government’s first plans became known, several heads of government of the federal states warned of a “winter gap” if there was no relief in January and February.

This brake does not apply to the entire consumption, but to 80 percent of the previous consumption. Anyone who consumes more has to pay the current high prices from the supply contracts.

Economics Minister Robert Habeck (Greens) promised last week that Electricity and gas price brake become a simple model, customers do not have to worry about anything. At the same time, however, the minister dampened expectations of the instrument. Energy will remain more expensive than a year ago. Before the start of the energy crisis, the price was around 6 cents.

The federal government also wants to provide an incentive to save energy, especially in private households. Due to the stopped gas deliveries from Russia, the supply situation is currently tense, which is why the federal government is calling for gas savings. In addition: The 12 cents per kilowatt hour of gas are still high compared to before,

The relief for industry is subject to conditions. So may during the period of stabilization measure In principle, no dividends will be paid, according to the draft.

the Electricity price brake shall also apply from March 1, 2023 to April 30, 2024. However, the relief for January and February should also be credited retrospectively in March. The electricity price for private consumers and small and medium-sized companies is limited to 40 cents gross per kilowatt hour. Here, too, the federal government is providing an incentive to save, in that the brake only applies to 80 percent of previous consumption. Anyone who consumes more must pay the higher applicable prices from their electricity provider.

Gas price brake: the federal government takes on new debt

The vast majority of the energy price brakes should be financed via a “defense shield” with a volume of up to 200 billion euros, the federal government is making new debts.

The one contrary to international law war of aggression According to the draft quoted by the German Press Agency, the situation on the energy markets in Germany and Europe over the course of 2022 was increasingly aggravated by Russia versus Ukraine. In particular, the recent very large price increases for natural gas and heat represent a “considerable, sometimes existential burden” for the population and companies in Germany. “They are an enormous socio-political and economic challenge.”

This article first appeared on

More articles from this category can be found here: Politics

Leave a Comment