Germany vows to swiftly start natural gas subsidies

Bloomberg

German Chancellor Olaf Scholz promised the swift implementation of natural gas price subsidies recommended by a government-appointed panel to ease the impact of soaring energy costs.
“The cabinet will start implementing the proposals this Wednesday,” Scholz said at a press conference in Berlin. “We don’t want to let anyone alone in this difficult situation.”
Germany, Europe’s largest economy, is at the heart of a historic energy crisis gripping the continent as Russia curtails gas shipments to the region, with the country putting together a $200 billion emergency aid package. About half of the money should be used to subsidise households and businesses facing high gas prices, according to the Independent Commission for Natural Gas and Heating, which presented its final report.
Although gas prices have fallen in the past few weeks, helped by a stretch of unusually warm autumn weather, they’re widely expected to rise again. Berlin has held talks with the EU over the measure.
In March, about 80% of gas consumed by about 20 million households and small businesses will be capped at 12 cents per kilowatt-hour and limited to 9.5 cents for when used for heating. To bridge the time until spring, this group will receive a down payment — one twelfth of the annual consumption — as early as December.
And from January 1, about 25,000 companies can now expect a price cap of 7 cents per kilowatt-hour on as much as 70% of their consumption.
Germany’s expert panel had to adjust several of its earlier proposals from an interim report. For example, companies have to register with their local supplier and make the subsidy public.
Another point of contention was left open — whether companies that receive subsidies should be allowed to pay
out dividends and bonuses,”
Chancellor Scholz said.