German commission proposes household gas price cap at 12 cents per kWh

Germany should cap gas prices at 12 euro cents per kilowatt hours (kWh) for 80% of households' basic consumption from March 2023 until at least the end of April 2024, according to a final report by the country's expert commission to the government. The cap should also benefit large industrial consumers, limiting their gas prices to 7 cents per kWh, the report said on Monday, adding that this should come into force from Jan. 1, 2023 and remain in place until the end of April 2024.

Germany should cap gas prices at 12 euro cents per kilowatt hours (kWh) for 80% of households' basic consumption from March 2023 until at least the end of April 2024, according to a final report by the country's expert commission to the government.

The cap should also benefit large industrial consumers, limiting their gas prices to 7 cents per kWh, the report said on Monday, adding that this should come into force from Jan. 1, 2023 and remain in place until the end of April 2024. The brake for this category will apply to 70% of companies' 2021 basic consumption.

The commission proposed conditions on firms making use of the measure, including that they keep 90% of jobs for a year and maintain existing sites in Germany. A one-off payment to relieve household consumers should amount to one month's gas bill and should be paid out by Dec. 20 this year, the commission said in its 34-page report, which is to be presented to the government at noon.

The commission also proposed introducing gas savings bonuses for certain groups of consumers by providing a fixed financial incentive for those saving 20% or more of their 2021 gas consumption.

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