Scholz announces an energy flat rate for pensioners and students and a reduction in the price of electricity

Scholz announces an energy flat rate for pensioners and students and a reduction in the price of electricity
Scholz announces an energy flat rate for pensioners and students and a reduction in the price of electricity

Mar September 4, 2022 11:23 am

Chancellor Olaf Scholz today presented an aid package for Germans in the total amount of 65 billion euros (1.6 trillion crowns). The government is planning to introduce an energy flat rate for pensioners and students, to reduce the price of electricity for basic consumption and to increase allowances for children. Scholz stated this at a press conference.

“Our country is facing difficult times. This is part of the truth these days, and this truth must be told. I am very aware that many citizens are very worried about their future, they are very worried about the high electricity prices and the increased cost of living,” the chancellor said.

The three parties in Chancellor Olaf Scholz’s government coalition agreed today on the measures, which include proposals to extend public transport discounts and tax breaks of 1.7 billion euros (41.7 billion CZK) for 9,000 energy-intensive businesses. “It is the largest of the three packages so far,” said Scholz, according to ČTK.

A one-time energy rate of 200 euros for students and 300 euros for pensioners is planned from December 1. In the future, a discounted price will apply for the basic consumption of electricity. In case of additional consumption beyond the basic subscription, the price would not be limited. However, according to the media, the government document does not indicate how high the basic consumption is.

The government coalition wants to finance the electricity price brake by cutting the profits of energy companies. “First we will try it at the European level, and if that doesn’t work, at the national level,” Greens leader Omid Nouripour said.

A one-time subsidy for heating in the amount of 415 euros is being prepared for the heating season from December 2022. It should concern those people who are entitled to housing allowance.

Child benefits should be increased significantly. At the beginning of the new year, they should increase by 18 euros per month for the first and second child.

The government is also planning a new national public transport ticket for citizens.

According to the chancellor, Germany “will be able to handle this winter” and secure energy supplies despite the drying up of Russian gas supplies, on which its economy is heavily dependent. “Russia is no longer a reliable supplier of energy (…) The federal government has been preparing for this possibility since the beginning of the year,” Scholz told reporters, stressing that thanks to the diversification of supply sources and the replenishment of gas reserves, the country is able to cope with a longer shutdown of the Nord Stream gas pipeline 1.


The article is in Czech

Tags: Scholz announces energy flat rate pensioners students reduction price electricity

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