Habeck Ministry names figures
What a gas price cap would cost
09/25/2022 11:59 am
In order to make the rising gas prices digestible for the citizens, politicians are discussing the introduction of a gas price cap – from a certain level the state then takes over the bill. A request from the left now gives the first indications of the costs of such a plan.
For the first time, the federal government has given figures on the costs of a possible cap on gas and electricity prices. In order to lower the end consumer price for gas by one cent per kilowatt hour, an amount of 2.5 billion euros would be required from the state treasury, according to a response from the Federal Ministry of Economics to a left-wing request that was available to the editorial network Germany. In the case of electricity, it would therefore be 1.3 billion euros per cent and kilowatt hour.
According to the report, an average single-family household with an annual gas consumption of 20,000 kilowatt hours would save around 200 euros a year with every cent waived per kilowatt hour, the newspaper reported. For a single household with 5000 kilowatt hours of gas consumption, it would therefore be 50 euros per year.
Depending on the model, the state would not pay one cent per kilowatt hour for all consumers, but only for households with a particularly high load – if a certain cap is exceeded. According to the ministry, the total state costs also depend on the specific model: “The total amount that results in the event of a price cap depends on how high the cap is set and how the end consumer prices develop,” according to the report in the letter from Secretary of State for Energy Patrick Graichen.
In view of these sums, the left-wing faction believes that a price cap can be financed if an excess profit tax is introduced for this purpose, as in other EU countries. Group leader Dietmar Bartsch therefore called on the Minister of Economics to introduce an electricity and gas price cap: “Robert Habeck must finally correct his energy policy, which has often failed,” Bartsch told RND. “The gas levy in its devastating form for citizens and businesses must go, a cap on gas prices is necessary.”
“The figures from the Habeck Ministry show that capping prices would be possible and affordable,” said Bartsch. “A gas price cap could be financed with the funds from an excess profit tax on indecent profits at the oil and energy multinationals.”