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Energy prices: Association of Towns and Municipalities calls for subsidies for heating costs from the federal government


The Federation of Towns and Municipalities demands that the federal government must relieve poor households in terms of energy prices with higher heating cost subsidies. The municipalities would already have to cope with higher expenditure.

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In view of rising gas and oil prices, the Association of Towns and Municipalities is calling for higher heating cost subsidies for low-wage earners and socially disadvantaged households.

“We're seeing an explosion in energy prices, especially for gas.

It is clear that energy should not only be something for the rich, "said the chief executive of the association, Gerd Landsberg of the" Bild "newspaper.

"Therefore, the next federal government is called upon to support financially weak families in particular and to mitigate the explosion in heating costs," he demanded.

Landsberg also warned of higher costs for the municipalities.

The sharp rise in gas prices would "hit many municipalities hard - through higher energy costs for buildings and higher heating cost subsidies for Hartz IV recipients."

According to Landsberg, the municipalities expect a deficit of between eight and 8.5 billion euros this year.

It could be similarly high next year.

A "dramatic social imbalance" threatens

The president of the social association VdK, Verena Bentele, spoke out in favor of adjusting the housing allowance for people with low incomes to the rising energy costs every year.

In view of the immense price increases for energy, the state must create social compensation for low-income people.

"It cannot be that almost every second household in a major German city has to spend more than 30 percent of net income on rent, a quarter even at least 40 percent," Bentele told the Tagesspiegel.

"Politicians must finally create the framework conditions so that living space, electricity, heat and healthy food are affordable for everyone in the country."

The board of directors of the Federal Association of Consumer Organizations, Klaus Müller, warned that if the rise in energy and petrol prices continued unchecked, a "dramatic social imbalance" threatened.

RWE boss does not expect prices to ease quickly

The gas prices in the European markets had reached a new record level in the past few weeks, fueling concerns about a shortage in winter.

The reasons for the significant price increases are both low stocks and increasing demand in view of the approaching winter.

According to experts, this is associated with panic buying.

A limited supply also contributes to the price increases.

The CEO of the energy company RWE, Markus Krebber, expects further price increases for consumers. »I expect electricity and gas to become more expensive in the next few years. It is not yet possible to say how strong the increase will be. Nobody expected the current explosion in stock exchange prices, ”he told the Rheinische Post at the weekend.

Krebber cited several reasons for the recent price development.

“Last winter was very cold and the windy year was weak, so gas-fired power plants often had to step in.

Less liquefied gas was delivered to Europe, and we are seeing an increase in demand from the economy around the world, which has picked up again after Corona. «Russia produces as much gas as in previous years, said Krebber.

"But because of the high demand from Asia and Russia itself, less is arriving in Europe."

mmq / Reuters / dpa-AFX

Source: spiegel

All business articles on 2021-10-11

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News/Politics 2021-10-14T15:51:49.019Z

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