So far, the federal government has spent 31 billion euros on energy price caps – significantly less than originally planned. But prices continue to fluctuate very strongly. Is there an extension?
The federal government has so far needed significantly less money to curb prices for electricity and gas than was budgeted for in the 2023 budget. In total it is 31.2 billion euros, according to figures from the Ministry of Economic Affairs, which were first reported by the media company Table.Media on Thursday. According to this, 11.1 billion euros were paid out to suppliers by the end of October for the gas price brake. According to the ministry, the figure for the electricity price brake was 11.6 billion. In addition, there are 4.8 billion euros for emergency natural gas aid and 3.7 billion euros in subsidies for network fees. The budget has earmarked 83.3 billion euros for price curbs this year.
The energy price brakes were intended to mitigate the rapid rise in gas and electricity prices following the Russian attack on Ukraine. The prices were therefore capped for a large part of private consumption – for electricity to 40 cents and for gas to 12 cents per kilowatt hour. However, the prices for new customers are currently generally lower, according to the Ministry of Economic Affairs. The price caps will primarily benefit customers who signed an expensive contract in autumn 2022 and have not yet been able or unwilling to adjust it.
The energy price brakes expire on December 31, 2023, but the aim is to extend them until a maximum of April 30, 2024. The ministry argues that prices continue to fluctuate very strongly. The extension should therefore act like a kind of insurance.
According to Table.Media, the unused funds flow into the reserves of the so-called economic stabilization fund. It is clearly defined what the money in this pot can be used for: to cushion high energy prices and to support companies that have gotten into difficulties because of the energy crisis.
Energy price brakes in law
Source: Stern
