Financing of the gas price brake described above

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Stage 2 (gas and heat price brake): From March 2023 to April 2024, private households and SMEs would pay 0.12 euros per kilowatt hour for the first 80 percent of the previous year's consumption. For consumption beyond this, customers would have to pay the usual market rates.
Regulation for industrial consumers: Large industrial companies would pay a fixed rate of 0.07 euros per kilowatt hour for the first 70 percent of their gas bill for 16 months as of January 2023.
4. Reactivation and realignment of the Economic Stabilization Fund:
The use of the WSF, which is endowed with additional credit authorisations of EUR 200 billion, is to be limited to the fulfilment of the following tasks:

Provision of liquidity and subsidies for the electricity price brake, in addition to the skimming of the windfall profits of electricity producers
Financing further support measures for companies that are not sufficiently lithuania consumer email list covered by the electricity and gas price brake
Replacement costs for gas importers relevant for market stability, such as SEFE, Uniper and VNG.
5. EU solidarity levy for companies in the energy sector:
The government welcomes the European Commission’s proposal to “introduce a solidarity levy for companies in the oil, natural gas, coal and refinery sectors”.

6. Reduction of VAT on gas:
By spring 2024, the sales tax on gas and district heating is to be reduced to seven percent.

7. Avoiding disproportionate bureaucracy:
The Federal Government would like to ensure that no disproportionate additional bureaucratic burdens affect the economy.

Gas levy disappears from the scene
The Federal Minister of Economics confirmed that the gas levy had been introduced by regulation and would be withdrawn by regulation. The measures contained in the defense shield make the controversial gas levy obsolete. This had become a socially political issue in recent weeks. The gas levy was planned to come into force on October 1, 2022. Consumers were to pay an additional surcharge to secure the profitability of the energy companies that had run into difficulties. Now the gas levy has been overturned again a short time later.

Nothing is set in stone yet
The 200 billion euro defence shield is a powerful instrument. The relief seems not insignificant in order to actually provide relief on paper. However, it is unclear how much money will be spent on the individual sub-measures. It also remains to be seen how the two-stage process will work administratively and operationally. At the same time, criticism has been pouring in from several sides. Leading economic research institutes have warned that a gas price cap could further fuel the already high inflation. In addition, critics believe that the incentives to save the scarce gas are still too low. At the European level, too, there was outrage at the federal government's plans. French President Emmanuel Macron summed up that the measures had led to tensions between countries that cannot finance such a large package at the national level. The energy package creates an unfair advantage for German companies on the European energy market. So it remains exciting for the federal government, both at the national and European level, as there still seems to be a lot of educational and persuasive work to be done. We will keep you updated.

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