Inflation: Germany will cap energy prices from 2023

The ceiling on gas and electricity prices is the main component of the price shield of 200 billion euros announced by the German government. From March 1, it will subsidize in particular 80 % of household gas consumption.

Le Monde with AFP

The German price shield on energy prices, announced by the Chancellor, Olaf Scholz, to mitigate the impact of inflation, will come into force in early 2023, according to the roadmap presented Wednesday, November 2 by the government. The cap of gas and electricity prices is the main component of the energy “bazooka” of 200 billion euros announced at the end of September by Berlin.

In the case of gas, the measurement must apply from 1 er January for large companies and at 1 er Mars for households and SMEs, According to a final project published by the German government. Retroactive care of invoices for February is also “envisaged”.

The government will subsidize 80 % of household consumption. Beyond this volume, individuals will pay gas at market prices. The cap is scheduled until April 2024. Berlin provides for households, a cap at “12 cents per kilowatt hour”, except for heating, to “9.5 per kilowatt hour”, against an average of 18.6 cents currently, According to the price comparator Check24.

“Emergency aid happens!”

For manufacturers, the price of gas will be set at 7 cents per kilowatt hour, up to 70 % of consumption. Regarding electricity, the mechanism will be put in place at 1 er January, at “40 cents per kilowatt hour” for households and 13 cents for large companies. Pending the implementation of these measures, the government will fully take charge of household gas bills in December.

“Emergency aid arrives!” Haded Olaf Scholz on Twitter . The different components of the energy package must still be adopted in the Council of Ministers or in Parliament. The industrial sector, engine of the German economy, calls for help for months claiming that the existence of thousands of companies is threatened in the country which is about to enter a recession.

These colossal expenses from Germany, funded by new loans, were poorly received in Europe, many countries accused of Berlin for lacking solidarity and showing unfair competition with other economies on the continent. Especially since the German government fought against a European -scale price blocking, fearing for the security of gas supplies if such a measure was adopted on the continent.

/Media reports.