Price ceiling for gas and electricity approved in Germany

The adopted law is aimed at protecting households and businesses from rapidly rising prices. While 372 deputies voted in favor of the law, 257 deputies voted against it.

The maximum price adopted 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.

For the law to take effect, it must also be approved by the Federal Council, which consists of 16 state representatives.

With the application of the price cap, households will benefit from a natural gas discount of 12 cents per unit, and industrial companies will benefit from a 7-cent discount.

The price of electricity per kilowatt-hour will be capped at 40 cents for small and medium-sized businesses, as well as households.

SERIOUS ENERGY CRISIS

Germany is facing a severe energy crisis due to the war between Russia and Ukraine, which has caused cuts in gas supplies and pushed energy prices to record levels.

The German government introduced energy saving rules aimed at reducing gas consumption by 20 percent in autumn.

The government is trying to diversify its sources of natural gas supply 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 began in February, Russia supplied 55 percent of Germany’s natural gas needs. (AA)