The relief in gas and electricity prices can come: the federal and state governments agree on the financing of the billion-dollar measures. When exactly the price cap will be implemented is still open. Most recently, an introduction from March was under discussion.
The federal and state governments have agreed on the gas and electricity price brake. Gas prices should be capped at 12 cents per kilowatt hour and electricity prices at 40 cents, said Federal Chancellor Olaf Scholz from the SPD after the consultations with the conference of state prime ministers. This is now being implemented together with other regulations, such as skimming off so-called random profits from electricity producers.
Scholz initially gave no dates for implementation. According to the words of North Rhine-Westphalia’s Prime Minister Hendrik Wüst from the CDU, the federal states unanimously advocated that the gas price brake come earlier than previously planned, otherwise there would be a gap in January where it would not yet apply. He is grateful to Scholz for having promised to at least examine an earlier entry into force in the Federal Cabinet this month. “We are convinced that it would be a good signal if the federal government closed the winter gap,” said Wüst.
The decision paper of the federal-state summit states that the gas price brake will be “introduced on March 1, 2023” as proposed by the gas price commission. However, “retroactivity to February 1, 2023 (…) is being sought”.
The federal government is also contributing billions in additional funds to accommodate refugees. For the current year, the federal government wants to provide an additional 1.5 billion euros for the care of refugees from Ukraine, among other places, said Scholz. So far, the federal government had promised the federal states 2 billion euros for the care of Ukraine refugees for the current year.
For the coming year, the federal government wants to provide another 1.5 billion euros for the reception of refugees, said Scholz. The federal government wants to give 1.25 billion euros to people from countries other than Ukraine who are seeking protection in Germany. “It’s a good understanding that puts us in a position to tackle the challenges we all face in this regard.”
