Plans to reduce German gas prices, according to the energy sector, cannot be implemented

The German state premiers have asked the energy industry association BDEW to implement the national “gas price brake” – a measure that is planned to keep rising gas prices in check – months earlier than what was initially proposed by an expert commission earlier this month. However, the energy industry association BDEW has rejected these requests. According to the president of the BDEW, Marie-Luise Wolff, bringing forward the gas price brake to January 1, 2023 is going to fail not because there is a lack of will on the part of the energy industry, but rather because it is impossible to implement the technical and administrative aspects in such a short period of time.

Because the essential IT process change was so difficult to do, the majority of energy suppliers were unable to deal with it when it was brought up suddenly. In an interview with the public broadcaster ARD, Finance Minister Christian Lindner expressed his concern that bringing the bill forward may not be “technically doable.” However, “all in our power to defend the substance of our German economy and what has been built up over decades,” he said, was being done by the administration.

A proposal to implement a “gas and heating price brake” from March 2023 to April 2024 was made by an expert commission that was tasked by the government with coming up with a strategy to assist gas customers who are being negatively impacted by growing costs. At a reasonably affordable cost of 12 cents per kilowatt hour, a fundamental quota of 80 percent of gas use would be granted to the customer. Consumption that is more than that amount would require the payment of the standard contract prices. The suggestion is currently being deliberated upon by the government.

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