Germany Sets Gas Price Cap for Large Industry from 1 January, Households 1 March

Germany’s gas commission on Tuesday has handed in its final report, suggesting a gas price brake from 1 March 2023 for households and for large industrial consumers from 1 January 2023.

• The commission has suggested a gas price cap at €0.12/KWh from 1 March 2023 to 30 April 2024 for around 80% of the estimated annual household consumption. The average household gas price was previously estimated at an average of €0.21/KWh.
• Around 25,000 German companies will be eligible for the gas price brake from 1 January.
• Previously, the commission announced plans to cap German household power prices to €0.40/KWh, also for 80% of the estimated annual household demand.
• The commission also demands Germany to source additional gas supplies and to increase other power generation capacities to lower the need for gas-fired generation.
• “Germany should continue to incentive gas consumption reduction as the German gas supply conditions remain tight, despite high gas storage levels", member of the commission Michael Zissis Vassiliadis said.
• German total gas storage levels are at 98.52% as of 31 October, Bnetza data show.