BERLIN (AP) — A government-appointed panel is proposing a two-step system to distribute up to 200 billion euros ($195 billion) in subsidies announced by Germany to ease pressure from high prices Energy.
German news agency dpa reported on Monday that the panel will offer one-time payments to natural gas customers equivalent to a single monthly bill this year, followed by a price subsidy for part of people’s consumption next year. .
Citing unnamed officials, dpa said that from January companies would pay 0.07 euros per kilowatt hour for the first 70% of their gas bill, based on consumption in the previous year. Private gas customers would pay 0.12 euros for the first 80%, starting in March.
The proposal drawn up by a panel made up of representatives from industry, unions, scientists and lawmakers is to be announced publicly later on Monday.
Many European countries have offered similar subsidies on fossil fuels, the prices of which have risen sharply around the world following Russia’s attack on Ukraine. But some of Germany’s neighbors have criticized the huge sum Berlin is setting aside, arguing it will shut others out of the deal.
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German Chancellor Olaf Scholz argues the criticism is based on a misunderstanding of his government’s plans and says Germany’s subsidy will prevent a gas shortage that could arise under a price cap system imposed by other countries.
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