Expert Commission for Natural Gas and Heat set up by the Federal Government presented initial recommendations for containing the energy crisis on 10 October. The model developed by the Commission in a rush and under political pressure consists of a one-off payment combined with a gas price brake for households and industrial consumers, which is to take effect from 1 April 2023 at the latest. According to calculations by the comparison portal Verivox, the price brake would reduce gas costs for households by around 41 per cent. A family with a consumption of 20,000 kWh would be relieved by 1,232 euros per year, calculates the comparison portal Check 24. A single person with an annual consumption of 5,000 kWh would save 308 euros. The price brake proposed by the expert commission on Gas has met with fundamental approval in the energy industry.German steel association W Stahl President Mr Hans Jürgen Kerkhoff said “The expert commission’s proposal to limit gas prices for industry for basic consumption from 2023 is an important building block for companies to bridge the severe energy crisis in this phase. It is important to prevent permanent damage to the industrial base. At the same time, a gas shortage must be avoided. The task now is to quickly implement the measures politically. Further steps must follow: For the companies, it is also crucial that there is an effective brake on electricity prices, which must now be implemented quickly. In addition to overcoming the acute crisis, it remains an urgent task to create medium- and long-term solutions for competitive gas and electricity prices for Germany as an industrial and steel location.”German non-ferrous metal association Wirtschaftsvereinigung Metalle WVM said “It is a hard sell that the price cap will only apply to 70% of gas consumption. The remaining 30% will result in production losses, which have ever already begun in our industry.”Germany’s largest energy industry association BDEW officials said “The Gas Commission has presented a convincing result.It was good that the Commission had dispensed with complicated models. However, it is also clear that the issue of energy saving will continue to be very important. It was clear from the beginning that the pre-war gas price level would remain a thing of the past, preparing the industry for a continuing high price level.{The Association of Municipal Companies VKU calls the proposal fair with a sense of proportion. It said “Households, trade and industry would all benefit. It would be considerable effort for the energy suppliers, who would have to adjust their billing procedures and the associated IT to this. But the municipal utilities have the confidence to do this. However, it must be ensured that the state benefit reaches the utilities in time. The municipal utilities cannot, for example, pre-finance the one-off payment of the December surcharge.”The Association of the Industrial Energy and Power Industry VIK spoke of a right step to relieve gas consumers. But added that it had to be examined to what extent individual companies that are particularly hard hit by the price increases still need support in the current year.The German Business Initiative for Energy Efficiency Deneff demands that in addition to the necessary relief, the special fund of 200 billion euros should primarily be used to invest in energy efficiency measures. It said “If we do not succeed in initiating the consumption turnaround through structural investments in more energy-efficient buildings, plants and infrastructure, the shortage situation threatens to worsen and the next so-called relief package will have to be passed next year.”
Expert Commission for Natural Gas and Heat set up by the Federal Government presented initial recommendations for containing the energy crisis on 10 October. The model developed by the Commission in a rush and under political pressure consists of a one-off payment combined with a gas price brake for households and industrial consumers, which is to take effect from 1 April 2023 at the latest. According to calculations by the comparison portal Verivox, the price brake would reduce gas costs for households by around 41 per cent. A family with a consumption of 20,000 kWh would be relieved by 1,232 euros per year, calculates the comparison portal Check 24. A single person with an annual consumption of 5,000 kWh would save 308 euros. The price brake proposed by the expert commission on Gas has met with fundamental approval in the energy industry.German steel association W Stahl President Mr Hans Jürgen Kerkhoff said “The expert commission’s proposal to limit gas prices for industry for basic consumption from 2023 is an important building block for companies to bridge the severe energy crisis in this phase. It is important to prevent permanent damage to the industrial base. At the same time, a gas shortage must be avoided. The task now is to quickly implement the measures politically. Further steps must follow: For the companies, it is also crucial that there is an effective brake on electricity prices, which must now be implemented quickly. In addition to overcoming the acute crisis, it remains an urgent task to create medium- and long-term solutions for competitive gas and electricity prices for Germany as an industrial and steel location.”German non-ferrous metal association Wirtschaftsvereinigung Metalle WVM said “It is a hard sell that the price cap will only apply to 70% of gas consumption. The remaining 30% will result in production losses, which have ever already begun in our industry.”Germany’s largest energy industry association BDEW officials said “The Gas Commission has presented a convincing result.It was good that the Commission had dispensed with complicated models. However, it is also clear that the issue of energy saving will continue to be very important. It was clear from the beginning that the pre-war gas price level would remain a thing of the past, preparing the industry for a continuing high price level.{The Association of Municipal Companies VKU calls the proposal fair with a sense of proportion. It said “Households, trade and industry would all benefit. It would be considerable effort for the energy suppliers, who would have to adjust their billing procedures and the associated IT to this. But the municipal utilities have the confidence to do this. However, it must be ensured that the state benefit reaches the utilities in time. The municipal utilities cannot, for example, pre-finance the one-off payment of the December surcharge.”The Association of the Industrial Energy and Power Industry VIK spoke of a right step to relieve gas consumers. But added that it had to be examined to what extent individual companies that are particularly hard hit by the price increases still need support in the current year.The German Business Initiative for Energy Efficiency Deneff demands that in addition to the necessary relief, the special fund of 200 billion euros should primarily be used to invest in energy efficiency measures. It said “If we do not succeed in initiating the consumption turnaround through structural investments in more energy-efficient buildings, plants and infrastructure, the shortage situation threatens to worsen and the next so-called relief package will have to be passed next year.”
