What effects does the budget freeze have on electricity and gas price brakes? Financial experts see possible consequences and are questioning energy suppliers.

What effects does the budget freeze have on electricity and gas price brakes? Financial experts see possible consequences and are questioning energy suppliers.

According to a report by www.berliner-zeitung.de,

The budget freeze imposed by Finance Minister Christian Lindner (FDP) on Monday raises the question of what impact it will have on electricity and gas price brakes. Economics Minister Robert Habeck (Greens) fears that the federal government wants to close the Economic Stabilization Fund (WSF) at the end of the year following the latest ruling by the Federal Constitutional Court. This could mean that the energy price brakes for electricity, natural gas and district heating would no longer be financeable from January.

However, the spokeswoman for the Berlin basic gas supplier, Ursula Luchner, gives the all-clear and explains that the budget freeze will have no impact on gas tariffs. The Gasag Group will even implement a new price reduction on all gas tariffs from December 1, 2023, which will lead to a further reduction in the labor price. The prices for electricity and district heating could also remain stable for a while, according to the Berlin basic supplier Vattenfall.

Berliner Stadtwerke is planning to reduce the labor price for all existing customers on January 1, 2024, which could lead to a reduction in electricity costs by up to 30 percent. The Ministry of Economic Affairs is trying to pay out the energy price caps for this year, although the long-term effects of the budget freeze on the WFS special fund are still unclear.

Overall, it seems that the impact of the budget freeze on energy prices in Berlin will not be dramatic for the time being. Consumers could even benefit from price reductions, especially for gas. However, the long-term impact on the energy market and consumer prices remains to be seen.

The federal government plans to close the Economic Stabilization Fund (WSF) at the end of the year following a ruling by the Federal Constitutional Court. This could mean that the energy price caps for electricity, natural gas and district heating can no longer be financed, which could lead to rising energy costs. However, the energy suppliers in Berlin are giving the all-clear and are even announcing price reductions, especially for gas. The long-term effects of the budget freeze on energy prices are still unclear, but in the short term the situation appears to be easing for consumers in Berlin.