Consumers and business in the country to receive subsidies starting from January 2023
The German government has announced a major relief package to reduce the burden on high electricity and gas prices for both consumers and companies. According to a report by Associated Press on Tuesday, November 22, the subsidies are planned to be imposed from January 2023, two months prior the original plan.
The report states, the government plans to cap gas prices at 12 euro cents per kilowatt hours and electricity at 40%. This subsidy will be applicable to consumers as well as small to medium-sized businesses. The report also adds, this subsidy will be applicable to only 80% of their previous year’s consumption, as the remaining 20% will have to be paid. This is aimed at encouraging customers to save energy as well.
On the other hand, companies and industries which have higher energy requirements will have a different rate of subsidy. For this category, gas prices will be capped at 7-euro cents per kWh for 70% of their 2022 consumption and electricity at 13-euro cents.
Meanwhile, German Economy Minister Robert Habeck said, this move to introduce the subsidies within two months will cost over € 4.5 billion more. The government has also decided to pay the gas and heating bills of consumers and small businesses for the month of December.
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