Electricity, gas and heating price brakes

Last updated: 24 May 2023

The Federal Ministry for Economic Affairs and Climate Action of Germany has put in place, upon approval by Germany's lower and upper chambers in December 2022, a series of measures for electricity and gas price discounts for small and medium-sized companies and private households to face rising energy prices. The measures are part of the economic protective shield worth a total of €200 billion adopted in October 2022.

The discounts are to take place starting in March of 2023, covering the months of January and February retroactively. For small and medium-sized enterprises, the allocated amount of 80 percent of their natural gas consumption will be capped at 12 cents per kilowatt hour, while the cap for heat will be at 9.5 cents per kilowatt hour.

Households and small enterprises receive a 40 cents per kilowatt hour discount for annual electricity consumption below 30,000 KWh. For medium-sized and large companies with an annual consumption of over 30,000 KWh, the electricity price is capped at 13 cents per kilowatt hour. The electricity price discounts will apply until the end of 2023 with a possible extension until April 2024.

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