The common goals are to stabilise the gas market, to secure energy supplies and to relieve the burden on people and businesses. Federal Chancellor Olaf Scholz and the Heads of Government of the Länder have agreed these goals. The aim is to maintain Germany’s social cohesion and economic strength.

Enabling everyone to pay their bills

“Prices must come down. The prices of electricity and gas cannot stay where they are today,” stressed Federal Chancellor Scholz following his talks with the Heads of Government of the Länder. “What is more, for as long as that does not happen, we must do all we can so that citizens, employers, families, pensioners and students – all those who make use of heating and electricity supplies – can afford to pay their bills,” Scholz said, which was why the Federal Government had applied the electricity price brake and imposed the gas price cap.  

The cessation of Russian gas supplies to Europe had further exacerbated the situation, Scholz added, and Germany was now in an emergency situation. This makes national unity and solidarity all the more important in cooperation between the Federal and Länder Governments. Ultimately, it is a matter of coming out of the crisis stronger and realising the transformation towards renewable energies.

Gas storage capacity 90 percent full

The next step towards securing energy supplies is to make use of all reasonable means of expanding electricity generation. Germany’s gas storage facilities are now at over 90 capacity. This gas will be available this winter. The necessary infrastructure is being built rapidly to increase liquefied natural gas (LNG) imports. The Federal and Länder Governments are initiating rapid planning and approval procedures for LNG facilities and connecting pipelines to ensure this happens. As a temporary measure, coal and oil power stations are being used to generate electricity and heat. The Federal and Länder Governments are providing constructive support for these efforts without unnecessary bureaucracy.

In the medium and longer term, the aim is for Germany’s energy needs to be met by renewable energy such as wind and solar energy, biomass, hydropower and geothermal energy. Along with this, it remains important to avoid gas shortages by saving energy and using it efficiently. The Federal and Länder Governments are also working together to achieve the European Union’s energy saving goal to reduce gas consumption by at least 15 percent compared to the past 5 years between August 2022 and the end of March 2023. 

Three relief packages plus a protective shield

The Federal Government has adopted three relief packages worth a total of 95 billion euros in order to relieve high prices. It has now also adopted an economic protective shield worth over an additional 200 billion euros, funded by credit appropriations.

The core element will be the “Gas Price Brake”, which limits the price charged for gas used by households and businesses. For this, a certain amount of consumption is to be reduced compared to the market price. Funding for the relief measures such as the Electricity Price Brake for basic use and limiting grid fees for electricity will in part come from the unexpected profits made by energy generators.