Gas and prices, this is how Scholz cares about the EU in Germany
Scholz said Germany will quickly implement an electricity price cap; the chancellor, however, is opposed to the price cap on gas pushed by the Commission. And without waiting for the European measures, the government has decided that …
The European Council of Energy Ministers, which met in recent days, did not find an agreement on the imposition of a ceiling on the price of natural gas; tomorrow, Wednesday 14th, there may be new announcements. Already today, the German Chancellor Olaf Scholz announced that Germany will quickly implement a price cap on electricity to protect domestic users and companies. He added that his government is also working on measures to lower gas prices.
WHAT SCHOLZ SAID
During a conference in Berlin of the BDA, an association representing private interests in various economic sectors, Scholz said , regarding the electricity price cap, that "we will carry out this project very quickly, so as to lighten the burden of electricity prices for both consumers and businesses ”.
"CHANGE THE STRUCTURE OF THE MARKET"
"We have to change the structure of the market so that it can function as such again and does not produce high costs that are not justified by production," he added. "We will make sure we can do the same for the heating and gas market, which obviously presents a different challenge."
WHY SCHOLZ IS AGAINST GAS PRICE CAP
The Chancellor has made it clear that a general ceiling on the price of gas – not limited only to that coming from Russia via pipes, therefore – is not the optimal solution, because it could put Europe on the margins of the global gas market: exporters, that is , they will likely decide to sell their fuel to other regions and other countries willing to pay more.
"As for gas, for example," said Scholz, "we are talking about supplies from friendly Norway , the United States, many other countries around the world, which supply us and charge prices for it."
PROMISES TO INDUSTRY
The chancellor also promised German industry that the government will take "further steps to lower prices at source and make them competitive and accessible again" for companies.
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HOW ARE THE PRICES
While remaining very high, energy prices in Europe are also falling due to the Commission's intention to exercise control over the markets. Gas futures have fallen by more than 20 percent since the beginning of September, Bloomberg reports.
WHAT GERMANY DOES
Scholz recently said Germany will spend 65 billion on measures to protect consumers and businesses from rising inflation linked to high energy prices. In the coming years, the government will also allocate 12-13 billion euros per year to subsidize the renovation of old buildings and improve their energy class.
German workers who pay income tax will receive a deduction of 300 euros to compensate for the high energy prices. Families with one or more children will receive a bonus of € 100 per child, which doubles for those with low income.
At the same time, however, consumers will have to spend almost 500 euros a year more on gas due to a new tax: it was introduced to help energy companies (such as Uniper) to bear the costs of replacing Russian supplies; it will take effect on October 1 and will last until April 2024.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/germania-tetto-prezzo-energia-elettrica/ on Tue, 13 Sep 2022 13:06:57 +0000.