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Gas Price Cap

Germany introduces a gas price cap in 2023 lasting through to 2024 to offset high gas prices.

A series of measures including a gas price cap will help bring down gas prices, support gas procuring companies and protect business, industry and private households. Funding for the proposed gas price gap will be made available from the country's EUR 200 billion energy defense shield.

96 billion euro support package

The German government has passed a two-stage model worth EUR 96 billion to be deployed in December 2022 and from January 2023 on through to April 2024 to ease the impact of high gas prices for residential as well as commercial customers.

Measures include:

  • December 2022: One-off payment to private households as well as small and medium-sized enterprizes with an annual gas consumption of up to 1.5 million kilowatt hours. 
  • January 2023: For large industrial customers, a gas price cap should apply from January 2023 at a procurement price rate of 7 cents per kilowatt hour at seventy percent of usage.
  • March 2023-April 2024: Gas price cap for private households as well as small and medium-sized enterprises with an annual consumption of up to 1.5 million kilowatt hours should be introduced to reduce the gas price to 12 cents per kilowatt hour from January 2023 through to April 2024 at eighty percent of usage. The gas price cap will be implemented retroactively in order to provide support for the months of January and February 2023.

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