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German Gas Price Brake to Cost 54 bln Euros - Document

BERLIN, Nov 15 (Reuters) - A planned brake on gas prices in Germany will cost an estimated 54 billion euros ($56 billion) through to April 2024, of which 21 billion euros will be for industry, according to an economy ministry document seen by Reuters on Tuesday.

However, the ministry warned that the estimates were subject to uncertainty due to current price developments.

Funds for the measure are to come from a 200-billion-euro "defence shield" announced by the government to pay for its response to the energy crisis.

The draft document sets out the key points of the mechanism to relieve households faced with high gas and heating bills.

The price per kilowatt hour (kWh) has been set at 12 euro cents for 80% of household consumers' estimated annual consumption, it says. The price for industry consumers is set at 7 cents per kWh for 70% of consumption.

For district heating - residual heat pumped to homes from power stations - the price is to be capped at 9.5 cents.

The price brake for industry is to kick in from January, while households will have to wait until March for their relief, although the government is looking at possible bringing that measure forward to February or January, the document adds.

($1 = 0.9619 euros)

Reporting by Markus Wacket Writing by Madeline Chambers and Rachel More Editing by Kirsti Knolle and Miranda Murray

Source: Reuters

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