Federal Network Agency: Gas price cap will be necessary by 2024

Created: 10/02/2022 12:34 p.m

Klaus Müller, President of the Federal Network Agency, speaks during an interview.

© Rolf Vennenbernd/dpa/archive image

Consumers and companies should be supported by the state with a lot of money because of the skyrocketing energy prices.

But how long actually?

The head of the network agency is delivering bad news to politicians - and there are already calls for a limited period of time.

Stuttgart - According to the Federal Network Agency, the planned gas price brake must apply for a period of almost two years.

"We will be in some kind of tense situation at least until the summer of 2024," said Netzagentur President Klaus Müller in a podcast by Baden-Württemberg Finance Minister Danyal Bayaz (Greens).

The gas price cap will “certainly” be needed by then.

The amounts of Russian gas that would have to be replaced are "huge".

First of all, the six liquid gas terminals and the connection to the hinterland would have to be built so that a lot of gas could flow from Belgium, France and Norway to Germany.

"It just takes time."

Müller believes it is right to relieve citizens of the sharp rise in gas costs, but also insists on incentives to save.

"If the signal were that gas would be as cheap as it used to be, then I'm sure we wouldn't see any savings or too few savings.

Then we see that gas consumption goes up.

And then we are faster than we would all like, precisely in a situation of shortage.” Despite the efforts of the federal government to procure and store gas, one cannot do without savings.

It is true that the basic requirement should be discounted when the price cap is closed, but it shouldn't be so lavish "that there is no longer any stimulus to save".

The head of the network agency recommended that the government quickly present a model for a gas price brake.

"Politicians will have to have the courage to implement a quick and easy-to-administrate model at least for this winter of 2022/2023." Müller fears that there will be a lot of arguments about where to draw the line for the cap.

"There will have to be a certain lump sum, which will be a touch unfair." Because the municipal utilities just don't know how many people live in a household.

That's why a calculation per capita is no longer necessary.

There will have to be a solution "where perhaps not all questions of individual justice are regulated, otherwise it will be so complex that nobody can implement it." The model can be refined for the winter after next.

On Thursday, the traffic light coalition announced a new “defense shield” of up to 200 billion euros to support consumers and companies because of rising energy prices.

The controversial gas levy is off the table - there should be a gas price brake for that.

At least for part of consumption, the prices should be capped in such a way that private households and companies are not overwhelmed.

What that means exactly is still unclear.

A commission is to make proposals by mid-October.

The FDP youth organization is demanding an end date from the federal government for state intervention in energy price design.

The leader of the Young Liberals, Franziska Brandmann, welcomed the announcement at the weekend and said: "It makes sense that the electricity and gas price brake included in the package ensures that a basic amount of electricity and gas remains affordable for all citizens and companies .” However, the government only emphasizes that it wants to limit the price brake without naming an end date.

"We demand: The intervention in the electricity and gas price may only be decided if a date is decided at the same time on which the measures will automatically expire," she said in a statement distributed in Berlin.

The network agency president appealed again to the population to save energy as much as possible.

"If we don't manage to save at least 20 percent in private households, then we won't be able to get by in an average winter without cuts in industry." It's not a good idea to "blob" energy-saving tips.

Müller said: "Saving energy is easy on your wallet, but it also saves jobs, added value and industrial plants in Germany." dpa