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>With prices going the other, governments in EU (including Germany) is now considering subsidies again by creating a price roof. Any difference between the roof
by KptMarchewa 4y ago
>With prices going the other, governments in EU (including Germany) is now considering subsidies again by creating a price roof. Any difference between the roof price and the market price will be paid by the government.
Isn't it the other way around? The difference won't be paid; the whole idea is to stop paying over the roof.
- deleted 4y ago[deleted]
- deleted 4y ago[deleted]
- belorn 4y agoThere is multiple different strategies discussed by other countries and EU itself. The EU commission as of 9 days ago suggested a price floor of 180 EUR/MWh on all energy production except gas, coal and hydro, using the difference as an tax to fund lower gas and coal prices. The Norwegian government will pay 50% of their citizens electricity bill of anything that exceeds ~€0.07 per kw/h, a decision they made last year. The Danish government announced today that they will offer any citizen an interest free loan for electricity bills, and removed all the energy taxes for the next 6 months. Germany stepped in 18 days ago to save the energy company Fortums with 150 billions euros of government money. Fortums had a lot of long term contract to deliver cheap gas, betting that the price would remain low, and lost that bet. The government intervention was said to be done in order to prevent an other 2008 crash. The UK announced the "Energy Price Guarantee for families and businesses" at the 1st October. This price guarantee is done through a mix of lowered taxes and direct social support (government stepping in and directly pay part of the bill). It is expected to see a lot of similar initiatives in EU until winter, especially as the energy price is predicted to significant rise when gas supply start to deplete.