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Germany to cap power prices – Reuters | Germany to cap power prices – Reuters |
(about 5 hours later) | |
The price ceiling will benefit both households and industrial consumers, the news outlet reports citing a draft regulation | |
Germany is about to introduce a price ceiling on electricity for both households and industrial consumers as part of its latest attempt to tackle the energy crisis, Reuters reported on Tuesday citing a draft document from the German government. | Germany is about to introduce a price ceiling on electricity for both households and industrial consumers as part of its latest attempt to tackle the energy crisis, Reuters reported on Tuesday citing a draft document from the German government. |
According to the report, power prices will be capped at 13 euro cents per kilowatt-hour for industrial consumers for 70% of last year’s consumption, while households will have a ceiling of 40 euro cents per kilowatt-hour for 80% of use. | According to the report, power prices will be capped at 13 euro cents per kilowatt-hour for industrial consumers for 70% of last year’s consumption, while households will have a ceiling of 40 euro cents per kilowatt-hour for 80% of use. |
The regulation is to come into force on January 1. | The regulation is to come into force on January 1. |
The news follows a similar draft regulation for gas prices. According to Reuters, Germany's gas commission presented a final proposal to limit costs to 12 euro cents per kilowatt-hour for 80% of households' standard consumption starting from March 2023 until the end of April 2024 at the earliest. Prices for industrial consumers are also to be capped – at 7 euro cents per kilowatt-hour. The changes will take effect in February. Berlin is reportedly due to make further decisions on the draft regulation later this week. | The news follows a similar draft regulation for gas prices. According to Reuters, Germany's gas commission presented a final proposal to limit costs to 12 euro cents per kilowatt-hour for 80% of households' standard consumption starting from March 2023 until the end of April 2024 at the earliest. Prices for industrial consumers are also to be capped – at 7 euro cents per kilowatt-hour. The changes will take effect in February. Berlin is reportedly due to make further decisions on the draft regulation later this week. |
Berlin’s unilateral measures to deal with the energy crisis, starting with a €200 billion aid package announced by Chancellor Olaf Scholz last month, have not been welcomed by the rest of the EU, which called for a more unified approach. | Berlin’s unilateral measures to deal with the energy crisis, starting with a €200 billion aid package announced by Chancellor Olaf Scholz last month, have not been welcomed by the rest of the EU, which called for a more unified approach. |
For more stories on economy & finance visit RT's business section | For more stories on economy & finance visit RT's business section |
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