According to plans by the federal government, unjustified tariff increases are to be put under the planned gas and electricity price brake. Abusive price increases are to be banned by the end of 2023.
In the event of a dispute, the supplier must prove “that the increase is objectively justified,” says the draft price brakes that have been submitted to the Bundestag. A justification could result from “market-based price and cost developments”. An “abusive use” of the regulations to relieve end customers is to be prevented.
First had the “Picture”-Zeitung reports that price increases would be generally prohibited in 2023.
A spokesman for the Federal Ministry of Economics told the dpa on Saturday that the abuse control serves to prevent unjustified price increases – i.e. those that cannot be justified by rising procurement costs. “That means not every price increase is automatically illegal, but those that are abusive and unjustified.”
Background: The coming price brake for gas and electricity
The background is the reimbursement claim that arises for suppliers from the energy price brakes decided by the government against the state. According to the plan of the traffic light coalition, a price brake for gas and electricity should apply from March, so the months of January and February will also be counted retrospectively.
The costs for 80 percent of the previous year’s consumption are limited to twelve cents per kilowatt hour for households and businesses. For electricity, the cap should be 40 cents. However, the higher market price applies to quantities consumed in excess of 80 percent in order to maintain the incentive for consumers to save.
Free-rider effects from price brakes should be prevented
The FDP energy expert Michael Kruse told the “Bild” newspaper (Saturday): “We want to prevent free-rider effects that encourage utility companies to pay higher tariffs.” SPD specialist politician Nina Scheer said: “As a result, abuse must be ruled out.”
Referring to figures from the consumer portal Check24, “Bild” reports that there should be massive price increases on January 1: 457 gas suppliers are planning an average increase of 56 percent, which would affect 3.6 million households.
636 electricity suppliers planned increases by an average of 60 percent for 7.5 million households. “Consumers may withhold payment of the increase,” said the head of the Federation of Energy Consumers, Leonora Holling, the newspaper.
The planned increases are not in proportion to the price development on the stock exchange. “We advise consumers to file an objection.” (Reuters/AFP/dpa/Tsp)