HomeMediaLatest NewsAnti-shock billions: how Germany softens the rise in prices for gas and electricity to citizens

Anti-shock billions: how Germany softens the rise in prices for gas and electricity to citizens

03 November 2022

Belogoryev Alexey M. Research and Development Director, Director of the Center for Energy strategic analysis and forecasting

Alexey Belogoryev, Deputy Principal Director on Energy Studies of the Institute for Energy and Finance, commented to Novye Izvestiya on subsidizing demand for gas and electricity in Germany.

In total, Germany allocates 200 billion euros to overcome the energy crisis. Already in December, both households and entrepreneurs will receive part of this money from the state. Such a measure will allow ordinary citizens of the country to pay at a reduced price up to 80% of the gas they need.

Alexey Belogoryev noted that the EU countries until the very last moment "walked away" from subsidizing the consumption of fossil fuels. The current decision, of course, is not a betrayal of "green" European values, but definitely a departure from a long-standing policy.

The expert recalls that the most energy-intensive and gas-intensive German industries - the chemical industry, metallurgy, and the production of building materials - suffered the most.

"They are highly dependent on the price of gas in terms of their total production costs. Therefore, industrial enterprises have most of all reduced the consumption of blue fuel this year, especially over the past month. And this was largely done by artificially reducing production, including by stopping part of the production," Belogoryev specified.

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