Germany plans to subsidize basic level of power for homes, businesses: Report
Germany plans to subsidize a basic level of electricity usage for households and set aside cheaper power for small and medium-sized businesses, according to measures set out in an economy ministry paper seen by Reuters on Thursday.
Electricity distributors would be required to grant households a certain electricity quota at a discounted price per kWh, with a similar contingent planned for small and medium-sized enterprises, the paper said.
The stated goal is to decouple the price of electricity from the price of gas, which has rocketed since the Ukraine war due to a plunge in Russian imports to Germany.
The ministry also detailed a planned cap on electricity prices for producers, with the difference on the market price to go toward funding the relief.
Germany also backs EU plans to impose a price cap on electricity, according to the paper.
However, it said: “If agreement cannot be reached quickly enough at European level, a national solution should be sought.”