Germany plans to subsidize basic level of power for homes, businesses: Report

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Germany plans to subsidize a basic level of electricity usage for households and set aside cheaper power for small and medium-sized businesses, according to measures set out in an economy ministry paper seen by Reuters on Thursday.

Electricity distributors would be required to grant households a certain electricity quota at a discounted price per kWh, with a similar contingent planned for small and medium-sized enterprises, the paper said.

The stated goal is to decouple the price of electricity from the price of gas, which has rocketed since the Ukraine war due to a plunge in Russian imports to Germany.

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The ministry also detailed a planned cap on electricity prices for producers, with the difference on the market price to go toward funding the relief.

Germany also backs EU plans to impose a price cap on electricity, according to the paper.

However, it said: “If agreement cannot be reached quickly enough at European level, a national solution should be sought.”

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