Energy price brakes are extended - savings potential low
The state gas and electricity price brakes will remain in place beyond the end of the year. Late last night, the Bundestag decided to extend the regulation, which expires at the end of the year, until March 31, 2024.
However, MPs rejected the extension until the end of April that was originally planned. The signals from the EU Commission, which must give its approval to the project, only allowed for an extension until the end of March, according to the resolution recommendation from the Bundestag's Energy Committee.
The price brakes for electricity and gas were introduced in March of this year and granted retroactively for January and February. This was intended to protect consumers in Germany from being financially overburdened by exploding energy prices as a result of the Russian attack on Ukraine. Prices were capped for a large proportion of private household consumption - for electricity at 40 cents and for gas at 12 cents per kilowatt hour.
Relief for consumers probably only slight
Although the situation on the energy markets has now stabilized, the continuation of the price brakes is "an insurance policy against unexpected risks", according to the decree by Economics Minister Robert Habeck (Greens).
However, according to the calculations of comparison portals, the relief for consumers is likely to be very small. Verivox assumes that electricity costs will fall by an average of 0.3 percent and gas costs by 1.4 percent. Check24 also expects electricity customers in a sample household to save just EUR 13. For gas customers, the experts expect savings of 45 euros.
The Association of Local Utilities (VKU) and the German Association of Energy and Water Industries (BDEW) also criticize the fact that the extension of the price brakes was only decided a month and a half before the turn of the year. "A smooth and timely implementation of the price brake extension by the energy suppliers as of January 1, 2024 can therefore not be guaranteed," they said in a joint statement. Due to foreseeable delays in billing, electricity and gas customers are already being asked for their understanding.
- Despite the extension of the energy price brakes, the potential savings for consumers might be minimal, with Verivox predicting an average decrease of 0.3% in electricity costs and Check24 expecting a mere €13 savings for electricity customers.
- The decision to extend the price brakes until March 2024 in the Bundestag comes despite initial plans for an extension until April, as EU Commission signals allowed for only a March expiration.
- The continued implementation of the energy price brakes beyond December 2022 is seen as an essential precaution by Economics Minister Robert Habeck (Greens), safeguarding consumers against unforeseen energy market risks.
Source: www.dpa.com
