The federal government wants to contribute to the high energy costs of citizens and companies throughout the winter and bring forward the planned gas price brake to early 2023. As announced on Tuesday from government circles, due to organizational difficulties, the brake will not officially be introduced until March 1st. However, when the regulation comes into force, the energy suppliers should also retrospectively relieve their customers for January and February and offset overpaid amounts in the following months. The electricity price brake planned at the same time should also take effect as early as January.
With the decision, the traffic light coalition is reacting to accusations from the opposition, the federal states and many associations that they are letting gas customers down in the cold season of all things. It has already been decided that the state will take the down payment to their supplier from citizens and companies once in December. The actual gas price brake should then only apply from March 1st, so there would have been no state aid in the winter months of January and February. This gap will now be closed.
The price cap applies to 80 percent of previous consumption
The government’s plans stipulate that private households, small and medium-sized enterprises as well as care, research and educational institutions should pay a gross gas price of no more than twelve cents per kilowatt hour for 80 percent of their previous consumption. If the supplier demands more, the state reimburses the difference. To give customers an incentive to save gas, the possibly significantly higher contract price applies to the remaining 20 percent of consumption. The guaranteed gross price for district heating is 9.5 cents, for large industrial customers the price for 70 percent of previous consumption is capped at seven cents per kilowatt hour.
The electricity price brake, which is also to apply from January, provides for a price limit for private consumers and small and medium-sized companies to 40 cents per kilowatt hour. Here, too, 80 percent of the previous year’s consumption is subsidized. For industrial customers, the limit is 13 cents plus taxes, duties and surcharges for 70 percent of previous consumption. In addition, there are hardship regulations for households, companies and institutions that are particularly affected by rising energy prices, for example for tenants, social organizations as well as culture and research.
Anyone who saves a particularly large amount of gas should be rewarded for it by the government
The total costs of all support measures amount to up to 200 billion euros. The corresponding funds are to be financed through new debt and pooled in the so-called economic stabilization fund, a special fund of the federal government. With the package, the government is responding to the massive additional burdens that citizens and companies have been struggling with since the Russian invasion of Ukraine and the halt to Russian gas supplies to Germany. For many customers, the gas price has multiplied since then, and the electricity suppliers are also raising their tariffs sharply.
In order to further increase the incentive to save gas, customers should also receive subsidies for 80 percent of consumption in 2021 if they actually use less. An example calculation shows what this means. A family of four with a monthly gas consumption of 1250 kilowatt hours and a tariff of eight cents per kilowatt hour previously paid 100 euros per month. If the new gas price is now 22 cents, 275 euros would be due in the future if consumption remained the same. With the gas price brake, twelve cents are now due for 80 percent of consumption and 22 cents for 20 percent of consumption. The bottom line is that the monthly payment increases to “only” 175 euros instead of 275 euros.
If the family now saves 20 percent on gas, they get 660 euros back with the bill at the end of the year. Converted to each individual month, she paid 120 euros. That would only be 20 euros more than before – even though the price of gas has almost tripled. If the family manages with 30 percent less gas, they get 990 euros back in the example. Converted to the month, that would still be 92.50 euros, i.e. even less than before. Corresponding sample calculations can also be made for the electricity price brake.
The reason why the government is providing such strong savings incentives is that a reliable supply of electricity and gas to all citizens and companies this winter and the following winter can only be guaranteed without a doubt if consumption falls overall. However, other factors such as the weather also play a role.