This is the main part of the controversial energy “bazooka” of 200 billion euros announced at the end of September by Berlin. The German tariff shield on energy prices, announced by Chancellor Olaf Scholz to mitigate the impact of inflation, will come into force at the start of 2023, according to the roadmap presented on Wednesday by the government.
With regard to gas, the measure must apply from “January 1” for large companies, and from “March 1” for households and SMEs, indicates a final draft published by the German government. Retroactive support for invoices for the month of February is also “envisaged”.
The government will subsidize 80% of household consumption. Beyond this volume, individuals will pay for gas at the market price. Capping is expected until April 2024.
Germany, the largest economy in Europe, has been hit hard by the energy crisis affecting the continent, while Russia has drastically reduced deliveries of Russian gas on which the country was particularly dependent.
Berlin provides for households, a ceiling at “12 cents per kilowatt hour”, except for heating, at “9.5 per kilowatt hour”, against an average of 18.6 cents currently, according to the price comparator Check24.
For manufacturers, the price of gas will be set at 7 cents per kilowatt hour, within the limit of 70% of consumption.
Regarding electricity, the mechanism will be put in place on “January 1”, at “40 cents per kilowatt hour”, for households and 13 cents for large companies.
“Emergency help is coming! »
Pending the implementation of these measures, the government will fully cover household gas bills in December.
“Emergency help is coming! “welcomed Olaf Scholz on Twitter. The different parts of the energy package still have to be adopted by the Council of Ministers or Parliament.
The industrial sector, the engine of the German economy, has been calling for help for months saying that the existence of thousands of companies is threatened in the country which is about to enter a recession.
This colossal expenditure by Germany, financed by new loans, has been badly received in Europe, with many countries accusing Berlin of lacking solidarity and showing unfair competition with the other economies of the continent.
Especially since the German government fought against a European-wide price freeze, fearing for the security of gas supplies if such a measure were adopted on the continent.