Gas price support should be taxed by people with high incomes, gas savers should be rewarded – these are the cornerstones of the Gas Commission’s proposal, which are important for consumers. The companies should decide for themselves whether the industry needs support.
The government’s gas commission proposes a tax liability for aid and a reward for saving fuel. From an annual income of 72,000 euros, the support should be taxed, according to the final report of the experts from business, science and tenants’ associations. In this way, needy households in particular are to be relieved in a more targeted manner.
At the same time, they called for a bonus for consumers in order to exceed the savings target of 20 percent as far as possible. A hardship fund could also be used at the beginning of the year to support those in particular need as well as owners of oil and pellet heating systems. The Commission left open the question of whether companies can continue to pay out dividends and bonuses for executives.
Federal Chancellor Olaf Scholz announced that key points on the gas and electricity price brake would be presented this week. “We don’t want to leave anyone alone in this situation,” he said. In its interim report, the Commission had already proposed in view of the rapidly increasing gas prices that households and businesses should receive an advance payment in December and that 80 percent of consumption should be subsidized from March. The price should be capped at twelve cents per kilowatt hour.
District heating customers should also receive similar help. According to the Federal Association of Consumers, a larger four-person household could be relieved of around 1,000 euros per year via the previous proposals for the gas price brake. For the industry, seven cents for 70 percent of the basic consumption are provided from January.
Commission chairwoman and economist Veronika Grimm called the appointment of the committee a good approach by the federal government and a key to broad social acceptance of the proposals. The Association of Municipal Companies (VKU) warned to hurry: “In order for these reliefs to take effect quickly, we now need political decisions for practical implementation quickly,” said VKU Managing Director Ingbert Liebing. “The price brake can only take effect quickly if it can also be implemented quickly and practically – the simpler, the better.”
The housing industry expressed a similar opinion: “It is now important that the proposals of the Commission are implemented as quickly as possible, especially to help households with low incomes,” said Axel Gedaschko, President of the GdW, who was also represented on the Commission . “Above all, it must be ensured that the report of the expert commission and the good proposals are not talked down.”
In a first step, the federal government has already accepted the core of the proposals. In December, a twelfth of annual consumption is to be reimbursed. This is to be decided in the cabinet on Wednesday. From March to spring 2024, the price brake should then take effect for 80 percent of consumption. A government decision on this is expected in November. The SPD in particular, but also the federal states, are calling for aid to be provided for January and February as well. The Commission did not take this up, but referred to the hardship fund.
In total, the government has provided up to 200 billion euros to dampen energy prices and support companies. The aid for the approximately 25,000 industrial companies was discussed particularly controversially in the commission: It links it to the preservation of the locations in Germany and at least 90 percent of the jobs for up to one year after the end of the support. Every company should decide for itself whether to seek help.
According to the panel of experts, the Ministry of Economics has now clarified that the EU Commission will approve this aid with a view to competition law. Therefore, support from the cheaper gas contingent could take hold from January.
The Commission did not reach an agreement on the question of whether companies with state support may continue to make dividend and bonus payments. Greens Deputy Group Leader Andreas Audretsch called for a ban: “We need to focus on those who really need help. That also means that large companies that receive support should not pay high dividends and bonuses at the same time,” he told the Reuters news agency . “It’s good that the budget committee has already decided that with the votes of the traffic light coalition.” Despite its high gas requirements, the chemical company BASF has already announced that it intends to forgo the aid if possible – also with reference to the question of dividends.
