Electricity and gas prices: How the new price brakes work

From today on, the electricity and gas price brake applies to households and companies. The relief should also apply retrospectively for the billing months of January and February. How does this work? What is to be considered?

With the price brakes, the energy prices for a basic requirement are capped, namely for 80 percent of the previous year’s consumption of a household. For this quota, electricity should cost a maximum of EUR 0.40 per kilowatt hour. Natural gas 0.12 euros per kilowatt hour. And the price for district heating is capped at 9.5 cents per kilowatt hour.

The suppliers must also calculate the price brakes retrospectively for January and February. The following applies to consumers: Saving energy is still worthwhile. Because the state subsidizes only the basic requirement of 80 percent of the previous year. consumption. For the remaining 20 percent, customers have to pay the full price, depending on their energy supplier’s tariff.

Price brakes take effect automatically

The important thing is that the price brakes take effect automatically. Consumers therefore do not have to submit any applications to their suppliers. However, the energy companies should inform their customers about the recalculation by March 1st, i.e. by today, and adjust the discount accordingly.

However, some suppliers have not yet sent any letters, pointing to the great effort involved in recalculating. Consumer advocates advise checking the suppliers’ calculations and checking in particular whether the previous year’s consumption is correct. Because that is decisive for the relief amount.

Windfall effects feared by some suppliers

Because of the recent drop in energy prices, some suppliers now have tariffs below the price brakes. Others are significantly higher, which leads consumer advocates to assume that some suppliers are relying on deadweight gains. Because the relief for customers can be reimbursed by the state to the suppliers. Specifically, the state pays the difference between the price cap and the supplier’s contract price. If there is a suspicion of excessive tariffs, the Federal Cartel Office should check whether the price brakes have been abused.

For example, the higher the electricity tariff, the more companies benefit from state aid. The federal government has provided up to 200 billion euros in total to help consumers cap the prices for electricity, gas and district heating in view of the high energy costs.