High energy prices: protective shield for municipal utilities required

Status: 07/10/2022 3:32 p.m

Municipal utilities are in a difficult position because they cannot pass high gas prices on to consumers. The City Day is now calling for protective measures by the federal government – and is also calling on citizens to save energy.

Natural gas prices have risen sharply since the Russian war of aggression began. Many companies, consumers and municipal utilities are looking forward to the winter with concern.

The German Association of Cities therefore calls for better protection for municipal energy suppliers. The federal government must put the municipal utilities “under the protective umbrella for the economy,” said the President of the City Council, Markus Lewe, in the newspapers of the Funke media group. “And we need guarantees and loans for affected utilities as well as an insolvency moratorium to suspend the obligation to file for insolvency.”

“The municipal utilities supply millions of households, businesses and local industry. Local transport, municipal hospitals, garbage disposal and baths depend on it,” emphasized the CDU politician Lewe, who is also the mayor of Münster. “The security of supply must not be jeopardized.”

Stadtwerke balancing act

Lewe warned that the situation could be aggravated by the forthcoming maintenance of the Nord Stream 1 gas pipeline and speculation about a stop to Russian gas supplies. “The municipal utilities have to buy more and more expensively and master a balancing act: If the municipal utilities were to pass on the high prices, many households would not be able to pay them. If they did not pass them on, things could get tight for many municipal suppliers.”

The President of the City Council urgently called for energy saving. “Even now we all have to save every kilowatt hour that is possible. Everything belongs to the test, in every household and at work,” said Lewe. “The cities don’t leave out any area either: convert street lighting more quickly and reduce it at night, less hot water in public buildings, run air conditioning systems for shorter periods and adjust heating better.”

Find ways to mitigate the energy crisis for consumers and business

Frank Jahn, ARD Berlin, daily topics 10:45 p.m., July 10, 2022

Warm rooms in winter?

The Association of Towns and Municipalities also fears a tense situation in winter. He suggested the establishment of warming rooms. “Since nobody can say exactly how dramatic the development will be, consideration should also be given to providing heat islands or warm rooms where older people in particular can stay even in a very cold winter,” said managing director Gerd Landsberg of “Bild am Sonntag”.

Lemke demands protection for consumers

Consumer Protection Minister Steffi Lemke promised a postponement of payment for electricity and gas cuts in the event of a further increase in energy prices. “It can happen that in the event of an absolute crisis, the Federal Network Agency will allow energy companies to pass on increased prices to consumers despite a price guarantee,” she also told the “Bild am Sonntag”. Then a moratorium on electricity and gas locks would be necessary for consumers. “And in the event of a crisis, we would also have to decide on another aid package,” said the Green politician.

On the one hand, it must be ensured that the suppliers can maintain the energy supply in the country, said the Green politician. “And on the other hand, in such a crisis situation, nobody should have their electricity or gas cut off because they are in arrears with the bill.”

Energy flat rate: On average, about 193 euros will arrive

In order to cushion the high energy costs, the federal government has decided on relief – including the energy flat rate. In response to a request from the Left Party, the Federal Ministry of Finance now replied that of the 300 euros, an average of 193 euros net reached the employees.

The ministry used the average gross annual earnings for full-time employees, which was 54,304 euros in 2021, as the basis for calculating this. “Assuming no further deductions, the average amount would be a deduction of 107 euros on the energy price flat rate,” the answer continues.

The energy lump sum is to be paid out to employees subject to income tax in September. It is offset against the income tax rate. The Ministry of Finance announced that the deductions would range from 0 to 142.42 euros.

Less comfortable in winter

The federal and state governments are already considering energy-saving measures or have even implemented initial measures. The Council of Elders of the Bundestag decided on Thursday that the offices for MPs, their employees and the Bundestag administration should only be heated to 20 instead of the previous 22 degrees in winter. While the air conditioning systems used to provide a pleasant 24 to 26 degrees in summer, depending on the outside temperature, it will be 26 to 28 degrees in the future.

In the state parliament of Rhineland-Palatinate, the air conditioning in the building is only reduced to 24 degrees instead of 21 degrees, as a spokesman for the dpa news agency said. Several countries are preparing different measures for public buildings.

Much will depend on whether the Nord Stream 1 gas pipeline will be restarted by Russia after several days of maintenance. This starts on Monday.

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