The German tariff shield on energy prices, announced by Chancellor Olaf Scholz to mitigate the impact of inflation, will come into force at the start of 2023, according to the roadmap presented on Wednesday (2 November) by the government . Capping gas and electricity prices is the main part of the 200 billion euro energy “bazooka” announced at the end of September by Berlin.
With regard to gas, the measure must apply from 1is January for large companies and on 1is March for households and SMEs, according to a final draft published by the German government. Retroactive support for invoices for the month of February is also “considered”.
The government will subsidize 80% of household consumption. Beyond this volume, individuals will pay for gas at the market price. The cap is planned until April 2024. Berlin plans for households a cap of “12 cents per kilowatt hour”except for heating, at “9.5 per kilowatt hour”against an average of 18.6 cents currently, according to the Check24 price comparator.
“Emergency help is coming”
For manufacturers, the price of gas will be set at 7 cents per kilowatt hour, within the limit of 70% of consumption. With regard to electricity, the mechanism will be put in place on 1is January, to “40 cents per kilowatt hour” for households and 13 cents for large companies. Pending the implementation of these measures, the government will fully cover household gas bills in December.
“Emergency help is coming! »welcomed Olaf Scholz on Twitter. The different parts of the energy package still have to be adopted by the Council of Ministers or Parliament. The industrial sector, the engine of the German economy, has been calling for help for months saying that the existence of thousands of companies is threatened in the country which is about to enter a recession.
This colossal expenditure by Germany, financed by new loans, has been badly received in Europe, with many countries accusing Berlin of lacking solidarity and showing unfair competition with the other economies of the continent. Especially since the German government fought against a European-wide price freeze, fearing for the security of gas supplies if such a measure were adopted on the continent.