The right price for gas to the Germans? 12 cents per Kwh to consumers, and only 7 to companies
A commission of gas experts in Germany presented the government with a final proposal that provides for a maximum ceiling of 12 euro cents per kilowatt hour to cover 80% of household gas consumption from March to April 2024. This is a price in line with the current prices of the TTF, or slightly lower, but one third of the maximum,
The retail gas price cap in Germany is set to help households facing gas prices that are 2.5 times higher than this time last year, while soaring energy prices are likely to cause industrial closures and job losses in the wake of Russia's invasion of Ukraine.
The proposal, if accepted by the government, would reduce the current average gas price for October from 18.6 euro cents per kWh to 12 euro cents, R euters reported , citing Check24. This figure would potentially save German households over € 1,000 per year.
For industrial consumers, the proposed price ceiling recommends 7 euro cents per kWh from January to April 2024, for 70% of consumption. This measure should prevent companies from closing and losing jobs, but it is a heavily subsidized price, which creates a huge competition problem for the EU. With these prices the other companies of the old continent are displaced. According to the report, the subsidized price will be granted on the quantities consumed in 2021.
The German cabinet will decide on the proposal on Wednesday this week.
On Sunday, Reuters reported that the German government could implement some conditions to benefit from the "brake" on the price of gas and the reduction in taxes on the sale of fuel, including maintaining 90% of jobs for one year.
Opponents of potential gas relief packages fear that such policies will make procurement more difficult. Trade unions and lobby groups had also warned that small and medium-sized enterprises were considering moving to cheaper jurisdictions, and the expert commission's proposal hopes to avert this possibility.
Also on Monday, the German insurance industry warned consumers of "dangerous experiments" of heating in the presence of a surge in energy prices. Insurers fear that the risk of fire will increase with the use of candles, too many electric heaters or makeshift fireplaces.
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The article The right price for gas to the Germans? 12 cents per Kwh to consumers, and only 7 to companies comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/il-prezzo-giusto-per-il-gas-ai-tedeschi-12-centesimi-a-kw-ai-consumatori-e-solo-7-alle-aziende/ on Mon, 31 Oct 2022 18:13:53 +0000.