Ways out of the energy price crisis
Countries want to further relieve consumers
03/12/2022, 09:41 am
The Ukraine war is driving up energy prices. In the long run, the federal government’s relief package is not enough, say Lower Saxony and Saarland and are calling for concrete measures. For example, the heating subsidy should be increased.
In view of the rising energy prices, the federal states have called on the federal government to provide further relief for consumers and companies. Lower Saxony and Saarland are in favor of “effective measures” for natural gas, heating oil, district heating, electricity and fuels. The federal government’s planned relief package is an important first step that others must follow. The burdens on private households and companies have increased massively as a result of Russia’s “inhuman” war of aggression against Ukraine.
Saarland Economics Minister Anke Rehlinger explained that the high prices would not be sustainable for many. “We need a trio of things: curbing energy prices, relieving consumers and ensuring security of supply, among other things, through the expansion of renewable energies.” Lower Saxony’s energy minister, Olaf Lies, said politicians wanted to do everything possible to dampen energy prices for consumers and for the economy. “The warm apartment and the way to work in the car shouldn’t be decided by the wallet.”
Specifically, they propose, among other things, to increase the heating cost subsidy planned by the federal government for low-income households and for many students and trainees. Specialist politicians in the coalition had also spoken out in favor of this. In addition, electricity and gas cutoffs would have to be reliably avoided. A hardship fund should therefore be set up at federal level, through which energy debts of private households could be serviced on a transitional basis by means of a case-by-case assessment.
call for tax cuts
The taxes on energy products should be lowered gradually and thus in a plannable manner. The federal government should examine whether the electricity tax rates for private households and the economy could be permanently reduced to the European minimum level.
The federal government’s plan to increase the distance allowance to 38 cents from the 21st kilometer is to be welcomed. “Should the price spiral continue to turn upwards, this can only be a start, which must be followed by the examination of further increases and tariff adjustments.” The liquidity of municipal energy supply companies must be secured with bridging loans if necessary, it is said.
Other countries have already called for relief. The Union-led states of North Rhine-Westphalia and Bavaria are in favor of an energy price brake in a motion submitted to the Bundesrat on Friday. The electricity tax must be reduced to the European minimum, and the VAT on natural gas, electricity and district heating must be reduced.