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Energy prices: Federal government is considering financial aid for defaulting gas customers

2022-07-23T09:35:47.414Z


Rising energy prices can put people in financial distress. Before the gas contract is terminated, the federal government apparently wants to offer support. According to the "Bild" newspaper, two models are being discussed.


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Photo: Jens Büttner / dpa

The rising gas prices are causing financial problems for many people – the traffic light coalition apparently wants to offer help to those who cannot pay their bills as a result, so that they are not laid off.

As the "Bild" newspaper reports, citing coalition circles, two models are being discussed:

  • In one case, landlords could receive an interest-free loan from the state-owned KfW Bank and use it to pay their tenants' gas bills.

  • Otherwise, tenants and owners who are unable to pay their gas bills should be able to apply to a government agency for direct financial assistance.

    In this case, the federal government would pay for the aid, the report said.

SPD leader Saskia Esken meanwhile reiterated that the rules on protection against dismissal must also be tightened.

"In this crisis, no one should be left without electricity or gas because of late payment or possibly even lose their apartment," she told the "Rheinische Post".

She referred to similar regulations during the corona pandemic.

People with low and middle incomes in particular need support.

Scholz promises relief

On Friday, Chancellor Olaf Scholz (SPD) announced when the state entered the ailing energy group Uniper that suppliers would be allowed to pass on the significant price increases when purchasing gas from October 1st at the latest.

This would increase prices for end consumers across the board.

Scholz named an amount of two cents per kilowatt hour and for a family of four an amount of 200 to 300 euros per year.

To relieve low-income people, Scholz therefore also announced a housing benefit reform at the beginning of next year.

The group of eligible households is to be expanded via them and a flat-rate heating fee is to be integrated “in a way permanently”.

Tenants who get into financial difficulties because of the high energy costs should be legally protected, said the Chancellor.

The introduction of citizen income, which is to replace Hartz IV from January, has already been announced.

kko/AFP

Source: spiegel

All business articles on 2022-07-23

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