Action day for hardship assistance: Financial expert analyzes willingness to provide government support

Action day for hardship assistance: Financial expert analyzes willingness to provide government support

According to a report by www.mdr.de,

A day of action by the Saxony Consumer Center (VZS) to examine a state subsidy for non-pipeline-related energy sources took place at Fetscherplatz in Dresden. The hardship aid applies to heating oil, wood pellets, natural gas or coal, and only a few applications were submitted, particularly from landlords. The state government expected over 100,000 applications, but so far only 12,200 applications have been submitted to the Sächsische Aufbaubank (SAB).

According to SAB, over 95 percent of the applications submitted have been approved and so far 4.3 million euros have been applied for and four million euros have been paid out. Hardship assistance should be available to apply for via a special hotline until October 20, 2023, and consumers can receive a refund of 80 percent of the additional costs for the subsidized energy sources beyond a doubling.

The demand for the government subsidy is higher in rural areas than in urban areas, as the energy supply there is usually wired. In addition, landlords seem to be less interested in applying for support because they pass on the additional costs to the rent. This has an impact on consumers, particularly those on narrow pensions or low earners who are struggling to pay increased heating costs. The consumer advice centers offer energy advice to help citizens reduce their energy costs.

The impact on the market could be an increase in demand for non-pipeline energy sources and increased awareness of energy efficiency measures in households. On the other hand, landlords may be reluctant to take advantage of hardship assistance, which could lead to higher heating costs for tenants. It is important that consumers, particularly in rural areas, have access to advice and support to manage their energy costs.