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Electricity and gas prices: Federal government negotiates aid for public utilities

2022-09-22T13:51:28.958Z

Rising electricity and gas prices are causing regional suppliers to stumble. The federal government is already putting together the next aid package.



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Economics Minister Habeck: talks in the early stages

Photo: Bernd von Jutrczenka / dpa

Regional suppliers and municipal utilities are under pressure in view of the exploding energy costs.

According to insiders, the federal government is examining possible aid measures.

They needed support in the tens of billions, a person familiar with the talks told Reuters.

The sum could be higher than the 29 billion euros that are being raised to save the ailing energy company Uniper.

The talks between the federal and state governments are still in the early stages, and there are no decisions yet.

more on the subject

  • Gas company in crisis: who pays for Uniper's billion-euro rescue? By Claus Hecking, Martin Hesse, Benedikt Müller-Arnold and Gerald Traufetter

  • Inflation:Municipal energy suppliers warn of electricity price increases of 60 percent

The Federal Ministry of Economics said it was in contact with the states, but did not give any details.

According to Reuters, it is about liquidity support for gas purchases.

These are urgently needed, said the general manager of the Association of Municipal Enterprises (VKU), Ingbert Liebing.

"We need liquidity support for the municipal utilities, which now have to buy at ten times the usual prices before they can sell."

This poses enormous difficulties for many municipal utilities.

"Also because the banks can no longer provide financing."

"And whether that's 20, 30 or 50 billion, that's the secondary question for me."

pam/Reuters

Source: spiegel

All business articles on 2022-09-22

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