BERLIN (Reuters) – Germany’s gas price cap mechanism is expected to cost the federal government 54 billion euros by the end of April 2024, of which 21 billion will go to industrialists, according to an estimate by the economy ministry which Reuters was able to consult on Tuesday.
The ministry, however, warned that its estimates were questionable due to current price developments.
The financing of this mechanism will be included in the “shield” of 200 billion euros announced by the government of Olaf Scholz to try to cushion the shock caused by soaring energy prices.
The Ministry of the Economy plans to set the price per kilowatt hour (kWh) at 0.12 euros for 80% of the estimated average annual consumption of households, while industrial customers should only pay 0.07 euros per kWh up to 70% of their average consumption.
This mechanism should come into force in January for manufacturers but only in March for households, even if the government does not rule out bringing forward its application to February or even January, the document specifies.
(Report Markus Wacket, French version Marc Angrand)
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