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Thursday, November 3, 2022

German govt to pay for gas users

The German government has agreed on a proposed one-off payment for gas customers during a cabinet meeting on Wednesday.

• November 2, 2022
Gas cylinders
Gas cylinders used to Illustrate the story

The German government has agreed on a proposed one-off payment for gas customers during a cabinet meeting on Wednesday.

The so-called emergency relief measure should cover the cost of consumers’ regular upfront gas payments for December.

It said it was part of broader government efforts to cushion the rising energy crisis resulting from the Western response to Russia’s war on Ukraine.

Economy Minister Robert Habeck said despite a recent fall in wholesale gas prices, and future developments were uncertain.

“Private consumers and businesses increasingly suffer from these high prices and urgently need relief.

“Further steps will follow, and we are working flat out in the federal government to implement the gas and electricity price caps,” he said, welcoming Wednesday’s decision as an important first step.

The government expects the emergency relief measure to cost around €9 billion ($8.89 billion), according to a paper.

However, the legislative proposal will now go into parliamentary consultations, with both houses of parliament set to approve the measure by November 11.

It is intended as an interim solution until the introduction of a gas price cap for households in March.

Meanwhile, suppliers have made it clear that it is not feasible to introduce the gas price cap earlier than March.

(dpa/NAN)

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