Gas price cap will be needed until summer 2024

DAccording to the estimates of the Federal Network Agency for a period of almost two years. “We will be in some kind of tense situation at least until the summer of 2024,” said Netzagentur President Klaus Müller in a podcast by Baden-Württemberg Finance Minister Danyal Bayaz (Greens). The gas price cap will “certainly” be needed by then.

The amounts of Russian gas that would have to be replaced are “huge”. First of all, the six liquid gas terminals and the connection to the hinterland would have to be built so that a lot of gas could flow from Belgium, France and Norway to Germany. “It just takes time.”

Citizens must continue to save gas

Müller thinks it is right to relieve citizens of the sharp rise in gas costs, but also insists on incentives to save. “If the signal were that gas would be as cheap as it used to be, then I’m sure we wouldn’t see any savings or too few savings. Then we see that gas consumption goes up. And then we are faster than we would all like, in a shortage situation.”

Despite the federal government’s efforts to procure and store gas, savings cannot be avoided. It is true that the gas price cap should be discounted for basic needs. But it shouldn’t be so lavish “that there is no longer any incentive to save”.

The head of the network agency recommended that the government quickly present a model for a gas price brake. “Politicians will have to have the courage to implement a quick and easy-to-administrate model at least for this winter of 2022/2023.” Müller fears that there will be a lot of arguments about where to draw the limit for the cap. “There will have to be a certain lump sum, which will be a touch unfair.”

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