Germany extends energy subsidy plan

CONSUMERS and businesses in Germany will receive subsidies to soften the blow of higher natural gas and electricity prices starting in January, two months earlier than originally planned, officials say.

The move is part of a larger pot of almost 300bil (RM1.42 trillion) in subsidies that the German government is cooking up to address the energy crisis resulting from Russia’s war in Ukraine.

Gas prices for consumers and small-to-medium-sized

0.12 businesses will be capped at (RM0.57) per kilowatt hour and electricity at 0.40

(RM1.89) for 80% of their previous year’s consumption.

The remaining 20% won’t be subsidised, to encourage consumers to save energy.

The Economy Ministry said bringing the measure forward by two months would cost the public purse about 4.5bil (Rm21.2bil) more.