Germany proposals against expensive gas December bill paid by the

Germany, proposals against expensive gas: December bill paid by the state and from March a (nationwide) price cap

there Commission Used by the federal government to draw up a plan to relieve consumers of drastic price increases for gas and district heating after 35 hours of deliberations, it presented a two-stage intervention proposal. A payment Sole with which the state i December cost expected by users Referring to the consumption in September 2022, which is considered to be the month with the highest price. They would follow from March 2023 until at least the end of April 2024 Setting a true price cap. On80% of the need of families and small businesses surveyed in September 2022 would be guaranteed a pre-determined gross price of 12 cents Kw/h for gas and 9.5 cents Kw/h for district heating. However, for industrial needs, a cap of 7 cents Kw/h would be recognized for 70% of gas consumption already in January but not the December cost recovery. Beyond the set thresholds, the market price would be worth.
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The maneuver would cost 90 billion eurosof which 65 for private customers and small businesses and 25 billion for industry, which are insured by accessing the insurance Economic Stabilization Fund WSF set up to deal with Covid pandemic, reactivated with 200 billion for energy emergency. The economist chairs the 21-strong commission Veronica Grimm flanked by the boss of the German Confindustria Siegfried Russwurm and the Unions of Mining, Chemical and Energy Companies (IG BCE) Mikhail VasiliadisHe believes he has “developed a good and workable proposal”.

If for the chancellor Olaf Scholz the proposal “is a very, very good basis”, for social interest groups it is rather inadequate and thought too much at the last moment, even if it is positive that the coalition has buried the additional levy in the gas levy. The Association of Property Owners house and land resign by its President Kai Warnecke that the solution for calculating the reimbursement of December costs is not practicable and seems to have been thought up by those who have never seen a final heating cost bill: the start of the price brake only after winter is too late. Ulrich Schneider of the Paritätischer Wohlfahrtsverband identified clear needs and suggestions for improvement targeted cuts based on tax returns. The President of the Social Welfare Association VdK Verena Bentele He called for a fund to be set up for those most in need later this year, otherwise many run the risk of freezing. Also censored by Dietmar Bartsch dei left who tweeted about moving the roof to March 2023: “It will leave several thousand crushed in winter moon prices. For the owner of one villathat doesn’t need help is a good deal’. Then goaded by Bastian Neuwirth von Greenpeacereissued by the dpa agency that subsidies for industry are linked to commitments to energy efficiency and conversion to more environmentally friendly production processes in order to reduce dependence on fossil fuels.

The President of the ifo Economic Institute, Clemens Fuest, In an interview with ARD, he welcomed the fact that the Commission had, in the short time available, outlined a model capable of reconciling the needs of support with those of savers, but he also noted that the state intervenes late and the amount of methane for Europe is now limited. To the Equity capital an energy contribution is required, which also helps the other half of the users who heat with diesel oil or electricity. It would therefore be better for Fuest to provide one Energy contribution (energy fee) without source difference, paid as a lump sum as income. The federal government, on the other hand, has already promised an upper limit for the price of electricity, which has risen by around 44% with inflation at 10%. The responsible ministries and the Chancellery have given assurances that they will quickly check the Commission’s proposal for compatibility with European regulations and then formalize it in a legal text with the participation of the parliamentary groups so that the package can be implemented quickly Bundestag.

The work of the commission of experts is not yet over: by spring 2024, it still has to submit an interim report with valid estimates of the gas price increase decrease in the gas price increase in the gas price at European level, in relation to the development of the free on the world market. In the EU, the resentment about the German solo maneuver has not subsided, even if the finance minister Lindner (FDP) has assured that these are not subsidies, but a defense against the “Putin gas war”.