October 1, 2022

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Expanding social energy tariffs will cost €1 billion in 2022 |  money

Expanding social energy tariffs will cost €1 billion in 2022 | money

The extension of social tariffs for electricity and natural gas to everyone entitled to an additional allowance will likely be accompanied by a price of close to one billion euros for the whole of 2022. This was announced by the Federal Energy Regulatory Authority (CREG) on Tuesday. The federal government had initially allocated only 581 million euros.

On the one hand, there are the figures already known for 2021: the potential amount associated with the expansion is estimated at 265 million euros: 110 million euros for electricity and 155 million euros for gas. Originally, 176 million euros were allocated by the government.

New are the revised estimates for the whole of 2022. “The potential amount of the extension of social tariffs for electricity and natural gas for BVT customers (recipients of increased provisions, ed.) for 2022 is estimated at about 1 billion euros,” according to CREG. It comes to 383 million euros for electricity and 616 million euros for natural gas. Originally, 581 million euros were saved: 291 million euros for electricity and 290 million euros for natural gas. Energy prices have risen sharply since the war in Ukraine.

This brings the price of 2021 and 2022 together to 1.265 billion euros. The social tariff system – the lowest energy tariff on the market – was extended at the beginning of 2021 during the coronavirus crisis for everyone eligible to increase their Medicare reimbursement from the Health Insurance Fund.

The federal government already decided last week to extend measures such as a reduction in value-added tax on gas and electricity, compensation for those who heat with fuel oil, reduced fees at the pump, and an expanded social rate of up to about one-fifth of households. Titled.. extends until the end of winter.

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According to the center’s report, 880,024 families were eligible for the social rate in the first quarter of this year, or 17.4% of families. Two years ago, there were 424,943 (8.5 percent).