The German government agreed on the final details of its flagship energy support scheme to reduce energy bills for households and businesses, with finance coming from a tax on windfall profits made by energy companies.
Germany’s €200 billion aid programme sparked outrage from EU countries who warned it risked triggering a subsidy race that only Berlin could win.
On Friday (25 November), the government finally agreed on the final details of the scheme that will reduce gas, heat and electricity prices for consumers and industry alike.
“The price brakes for gas, electricity and district heating are coming. We are capping the energy price so that citizens can cope with the new prices and the challenges,” explained Chancellor Olaf Scholz.
Germany’s energy support measures that will de-facto come into effect on 1 January 2023 and last until April 2024 come with a hefty price tag: €99 billion, split between €56 billion to subsidise fossil gas as well as district heat and €43 billion for electricity.