The German Bundestag passed the law that limits gas and electricity prices for consumers and companies. The adopted law aims to protect households and companies from rapidly rising prices.
The German Bundestag has passed a law that limits gas and electricity prices for consumers and companies. The adopted law aims to protect households and companies from rapidly rising prices. While 372 deputies voted in favor of the law, 257 deputies voted against it. The adopted price ceiling is the cornerstone of the 200 billion euro package announced by the government in September to protect households and industrial establishments from high energy costs. In order for the law to come into force, it must also be approved by the Federal Council, which consists of 16 state representatives. With the ceiling price application, households will benefit from a discount of 12 cents per unit of natural gas, and industrial enterprises will benefit from a discount of 7 cents. The electricity price per kilowatt-hour will be capped at 40 cents for small and medium-sized companies as well as households.
ENERGY CRISIS IN GERMANY
Germany is facing a serious energy crisis due to the Russia-Ukraine war, which has caused cuts in gas supply and pushed energy prices to record levels. The German government introduced energy-saving rules aimed at reducing gas consumption by 20 percent in the autumn. The government is trying to diversify its natural gas supply sources by buying more gas from Norway and increasing imports through pipelines from Belgium and the Netherlands. Liquefied natural gas (LNG) terminals are also being built in northern Germany. Germany has not been importing gas from Russia since the explosions at the Nord Stream submarine pipelines in September. Before the war in Ukraine started in February, Russia was supplying 55 percent of Germany’s natural gas needs.