The German Independent Commission for Natural Gas and Heat has proposed a new €96bn new subsidy scheme starting in 2023 designed to cap gas bills for households and enterprises, while still incentivising energy savings. The plan is supported by the federal government, which is working to implement it.
From March 2023 to the end of April 2024, private households would pay €12c/kWh for the first 80% of the previous year’s use of gas. From 1 January 2023 until the end of April 2024, industrial tariff for 70% of the prior year's use would be set at €7/kWh. In addition, the commission proposed a one-off payment to cover the gas bill for all households and small to medium sized business in Germany for the month of December 2022.
This scheme would be part of the €200bn relief package that Germany agreed upon at the end of September 2022, which aims to shield households and industry against surging energy prices and enact an emergency price brake on gas. The package also included a cut of gas and district heating sales tax from 19% to 7%.
In 2021, the country's gas consumption increased by 4% to 96 bcm. Buildings (residential, services, and agriculture) accounted for 44% of Germany's gas demand in 2021; this is trailed by the industrial (30%) and power sectors (21%). Germany is the world's second largest gas importer after China with 156 bcm in 2021. In 2020, about 40% of Germany's gas imports were supplied by Russia.
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