How do energy price relief measures work?

For as long as the energy price relief laws are in force, energy costs incurred by private households and businesses will be limited. The measures are intended to ease the burden on energy consumers and at the same time continue to encourage energy saving. The legislature stipulates the maximum level of unit rates that can be charged for the supply of electricity, gas and heat. These reference prices vary for different customer groups, that is households, trade, industry, etc.

The gas price private households have to pay is limited to 12 ct/kWh; the price of electricity is limited to 40 ct/kWh, the price of district heating to 9.5 ct/kWh. The government guarantees these prices for a consumption of up to 80 per cent of the previous year’s annual consumption. For each kilowatt hour exceeding this share the price agreed in the supply contract must be paid.

If the unit rates agreed upon by the energy suppliers and their customers are above the reference price, suppliers can claim relief payments made available by the state. They will then be reimbursed for the difference between the reference price and the unit rate agreed with regard to their customers’ quantity quota. Within this framework, unit rates exceeding the reference price are only admissible if they are objectively justified (for example, because of increased procurement costs).

The relevant laws entered into force in December 2022 and will initially remain effective until the end of 2023:

Act on the introduction of price caps for pipeline-based natural gas and heat (Erdgas-Wärme-Preisbremsengesetz – EWPG)

Act on the introduction of an electricity price cap (Strompreisbremsengesetz – StromPBG)

Further details on these rules and how they are applied as well as on the rules applicable to businesses are available on the website of the Federal Ministry for Economic Affairs and Climate Action.

What does the Bundeskartellamt control?

Energy suppliers must not abuse the rules that are meant to cover the possible difference between the unit rates agreed with customers and the reference prices set by the state. If they charge prices that are higher than the capped prices and wish to be reimbursed by the state for the difference, the higher prices must be objectively justified. Higher prices are specifically not prohibited; they may be justified, for example due to higher procurement costs.

The legislature has made the Bundeskartellamt the competent authority for abuse control in this context in order to be able to check whether there are cases in which reimbursement payments made by the state have been claimed fraudulently (see Section 27 EWPBG and Section 39 StromPBG). The Bundeskartellamt checks pricing structures on a random basis in cases where certain irregularities are discovered. Suppliers are then required to explain to the Bundeskartellamt in particular their revenues and costs. They may also state reasons to justify their pricing, but have to bear the burden of proof.

In the event of an infringement the Bundeskartellamt

• can obligate suppliers to take remedial measures
• order that the compensation made by the state must be paid back
• remove other economic benefits
• impose fines