Gas surcharge: do we need a gas price cap?

Many do not find the increased gas prices fair: “The gas surcharge is not fair,” writes one reader, “direct state intervention in the affected utilities would have been better and fairer.” However, this failed because of the FDP under Federal Finance Minister Christian Lindner.

The other two governing parties, the SPD and the Greens, have also been criticized for seeing the solution to the energy crisis in the expansion of LNG terminals. And this despite the fact that liquefied gas was “demonized as extremely harmful to the environment because of fracking promotion” until recently, recalls another reader.

Would a gas price cap prevent the worst and distribute the increased gas prices more fairly? Our readers are skeptical, some of them firmly reject a price cap: “The gas price cap doesn’t work anyway,” one reader is convinced. “There are people who walk around the apartment shirtless and shorts in winter and then open the windows to regulate the temperature,” warns another reader. “Such behavior must not be tolerated or even rewarded with price caps and support in the form of heating cost subsidies.”

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Low-income households could be supported by the state, one reader suggests. But even those who belong to the middle class are at risk of running into financial difficulties: One reader writes that she can no longer afford the apartment for her family with rising energy costs: “We hope that the state will provide relief and we find it it’s bad habit to ‘punish’ the citizens for having gone the wrong way in gas procurement in recent years.”

We have put together a selection for you from the various letters from the Handelsblatt readership.

Subsidies are not a matter for private individuals

“The gas surcharge makes energy, which is already very expensive in Germany, even more expensive, hits medium-sized companies and private individuals in particular and is also particularly annoying because gas has been made palatable to us for years as a relatively clean form of energy. Sure, the higher price means that energy is saved, which is good in terms of environmental protection.

With the traffic light ‘tank discount’ it was exactly the opposite, energy consumption was made cheaper – what was all this nonsense? A previously well-earning company like Uniper, which of course put its profits into its own highly personal pocket, should now be allowed to socialize its losses. But if that’s how it’s supposed to be, then subsidies are a matter for the state, not for private individuals and companies!”
Wolfgang Schulze

When gas prices are too high, we need a new apartment

“We are a family of four who moved to a larger apartment in the outskirts of Berlin at the beginning of 2021. Since living space is known to be scarce on the housing market in and around Berlin, we knowingly rented an apartment with energy efficiency class D … It won’t be that bad, we thought.

Now this year the first billing of operating costs is imminent and we don’t even want to imagine what the costs will look like with the gas surcharge and the increased gas prices. If the announced burden of 432 to 576 euros per average four-person household applies, we will have to look around for a new apartment.

We hope that the state will provide some relief, and we think it’s bad habit to ‘punish’ the citizens for the fact that the wrong way has been taken in gas procurement in recent years. Here you have to come up with something for the citizens to create relief. Otherwise, we only go to work to pay the high costs for the day-care center/after-school care center and the housing and ancillary costs.”
Nancy Weinert

there is enough money

“Basically, a buyer (consumer) should pay the market price: purchase price of the product plus operating costs plus profit plus VAT equals selling price! There is enough money and a monthly additional expense of 12 to 58 euros is bearable in my opinion, for example by not going to a restaurant every month. In actual, proven cases of hardship, the state should ensure appropriate compensation.

I flatly reject the lump-sum demands of social partners, social associations, parties and so on, since experience has shown that they will continue to be demanded as a “social achievement” if the requirements are no longer met. I don’t believe in a gas price cap, because then further calls for price caps for other products will follow. Greetings from the planned economy!”
Karl Hagedorn

A gas price cap is necessary

“The distribution of gas costs is not fair – this does not create an incentive to save energy. A gas price cap is necessary because parts of the population are already left behind. I installed a PV system myself (at my own expense) – but unfortunately there is no clear concept for an energy transition in Germany. As a result, there are no incentives to support changes as citizens.”
Horst Schilling

A gas price cap would prevent us from saving

“We do not need a gas price cap for our own gas needs. The market does this itself by reducing consumption through savings. This works best if the gas price is not capped. What is the basic need anyway? It’s different for everyone.

There are people who walk around the apartment shirtless and shorts in winter and then open the windows to regulate the temperature. Such behavior must not be tolerated or even rewarded with price caps and support in the form of heating cost subsidies.”
Hubert Cullman

State intervention failed because of the Lindner FDP

“The gas surcharge is not fair. It would have been better and fairer for the state to intervene directly with the utility companies concerned. But this failed because of the Lindner FDP. A gas price cap would then have been unnecessary. I have been saving on fossil fuels for a long time, for example with regular maintenance and advice on gas heating, only use necessary electrical appliances in the household and only drive necessary distances with our hybrid.”
Thomas Danhuber

Welcome to reality

“It’s strange what the traffic light sells to the citizens as justification for the gas surcharge. Haven’t the big players pocketed their huge profits? And now possible losses are being socialized. And then liquid gas is presented as the ultimate solution, which until recently was demonized by Red-Green because of the promotion of fracking as extremely harmful to the environment. But as Konrad Adenauer once said: ‘What do I care about what I said yesterday!’ ‘Welcome to reality’ is what you have to call out to the Greens in particular.”
Heinz Peter Kamps

The gas price cap doesn’t work anyway

“Our heat requirement depends on the gas. This cannot be changed at short notice (delivery times, craftsmen). Now in the summer we don’t need space heating. However, we believe that we can save gas by taking showers in concert, for example. The residual heat from the stove is usually enough for an extra soup. At the same time, we are in the process of separating the service water heating from the gas heating and replacing it with an electric boiler, which could also supply enough energy from the winter sun. The gas price cap doesn’t work anyway. The interest groups will fix it!”
Peter Paul Schepp

The discussion falls short

“The discussion about a general ‘mitigating’ of the effects of current gas prices is somewhat short-sighted. About 50 percent of the heating systems in Germany are operated with gas, 25 percent with oil. Compared to the price two years ago, the price of heating oil has tripled, and the prices of fuel pellets and firewood have increased significantly. A general cap on gas prices leads to the suspension of the price steering function and also ignores the effects on other energies. The state can provide direct support for low-income households.”
Bernhard Luschper

The state should finance the gas levy with new debt

“Our government has stood by Ukraine in its defensive war against Russia in solidarity and fully aware of the serious economic consequences. Now is the time for our government to do what it swore the oath of office to do: avert harm from its own people—rather than collect it.

This would be possible by commissioning Nord Stream 2 and/or by fracking with methods that are now less harmful than in the past. In addition, the government should finance the ‘gas levy’ with new public debt.

Nobody in the USA knows the silly saying that our grandchildren have to pay the debts. The level of debt is corresponding there, and politics still works.”
Dieter W Keil

Wouldn’t it have been better to support the public utilities?

“Uniper, a public company that is more than 80 percent owned by foreign investors who showed little interest in rescuing their company, is being rescued by German taxpayers. Wouldn’t it have been better to support the public utilities that were threatened by the collapse of Uniper?

Instead, a gas surcharge will be levied in addition to the gas prices, which have already risen significantly. This is therefore socially completely unbalanced and unfair because a large proportion of private gas consumers, such as pensioners who do not apply for housing benefit or are Hartz IV recipients, neither through the heating money subsidy (which also applies to non-gas consumers) nor through subsidies for the housing benefit is relieved.

In addition, in the last few months far more gas has been burned to generate electricity than in the same months of the previous year. This consumption for the electricity market leads to an additional burden when procuring gas, makes the high prices for private gas consumers and proportionally the gas levy even more expensive.”
Werner Piotrowski

If you would like to have your say on this topic in the Handelsblatt, write us a comment, either by e-mail [email protected] or on Instagram at @handelsblatt.

More: Last week, the Handelsblatt readership debated whether the nine-euro ticket should be extended.

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