"Price increases with consumption": Habeck dampens expectations of gas price caps

The government wants to invest 200 billion euros to cushion the exploding energy prices.

"Price increases with consumption": Habeck dampens expectations of gas price caps

The government wants to invest 200 billion euros to cushion the exploding energy prices. Nevertheless, nobody should hope for gas prices like in 2021. Economics Minister Habeck warns that not every burden can be taken. A model that only covers basic needs is possible.

Federal Minister of Economics Robert Habeck has dampened expectations of the planned gas price cap. One cannot subsidize the gas price as much as it was in 2021, said the Green politician on Deutschland-Funk. "And not for a very long time. Gas and energy as a whole will cost the German economy more than it did in the very good years."

Also, not every price increase can be avoided. "A certain burden will be taken, but the entire burden will certainly not be able to be taken," said Habeck. "Not even with this gigantic 200 billion euros." In the "RTL Nachtjournal" the minister explained how the gas price brake model could be designed. "What is obvious is that you subsidize a basic requirement, but the peak consumption has to be paid for on the market. So the more gas you use, the more expensive it becomes."

The basic requirement is either determined via the corresponding gas consumption of the past year or a percentage of it can be determined, which is then cheaper: “That can be subsidized and reduced, but what goes beyond that, then just not. It will be such a model so that there is always an incentive to continue saving gas," said the Green politician. Habeck also called on consumers again to save energy: "We really have to save. We have full storage facilities, which is good, but we have to reduce gas consumption in Germany by a total of minus 20 percent and everyone can and should do their bit make a contribution."

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