Too high reimbursement from the state
Several suppliers are said to be abusing price brakes
05/15/2023 1:23 p.m
The price brakes for gas, district heating and electricity are intended to relieve the burden on citizens without the suppliers having to suffer. In addition, companies can have the difference reimbursed by the state. The Cartel Office has now suspected several providers of setting too high amounts.
Several gas suppliers are suspected of having set unjustifiably high end customer prices in connection with the gas price brakes. The Federal Cartel Office reported a two-digit number of suppliers who “possibly have submitted excessive reimbursement applications under the price brake laws”.
“We have indications that the prices for end customers could not be objectively justified and are in the process of bringing light into the darkness,” said Andreas Mundt, President of the Authority. The first test procedures on the basis of the energy price brake laws have been initiated. “We have the task of protecting the state from exploitation.” Further procedures for district heating and electricity are pending. The Cartel Office did not name an order of magnitude for these areas.
The price brakes that have been in effect since the beginning of the year are intended to relieve consumers. The price capped at 12 cents for natural gas applies to 80 percent of the forecast annual consumption. In order to promote energy saving, the contracted price must be paid for the remainder. The cap is 40 cents per kilowatt hour for electricity and 9.5 cents per kilowatt hour for district heating. The difference between the cap and the contract price is reimbursed by the state – and thus the taxpayer – to the utility companies.
Black sheep face fines
As the Cartel Office further reported, the proceedings initiated were preceded by an analysis of all application and notification data in several thousand applications. Prices, delivery quantities, relief amounts and customer numbers emerged from them. “As part of the examination procedure, the Bundeskartellamt will first systematically and data-based question the companies identified as conspicuous.” If violations are found, unlawfully obtained compensation payments would have to be repaid. “The imposition of fines is also possible.”
The price brake laws also regulate how abuse of the relief rules is to be prevented. For example, energy suppliers are prohibited from receiving a higher compensation payment by increasing end customer prices unless there is a reason for an increase due to increased costs.