Wealthy households with high gas consumption, such as villa owners with heated pools, are set to benefit the most from the German government’s planned gas price cap. The Gas Commission of the Federal Government recently developed a concept to relieve private households and businesses from the rising gas prices. However, according to an analysis by the Institute for Macroeconomics and Economic Research (IMK) of the Hans-Böckler Foundation (HBS), households with high incomes would benefit the most from the so-called gas price cap in Germany. The poorest 10% of households would receive an annual refund of €893, which would almost halve their gas bill from €2,116 to €1,222, assuming an unchanged consumption. In contrast, the richest 10% of households would receive a relief of €1,375 per year. The gas price cap would particularly benefit the wealthiest households whose gas consumption is significantly above average, such as a family with a villa and a heated pool that consumes around 90,000 kilowatt-hours of gas per year. According to the IMK’s calculations, they would receive a refund of €9,648 from taxpayers’ money. In comparison, a flat in a multi-family house with an annual gas consumption of 11,000 kilowatt-hours would receive a refund of €1,179. The calculations were based on a gas price of 25 cents per kilowatt-hour, while the current price for new contracts is 24 cents per kilowatt-hour.
The scientific director of the IMK, Sebastian Dullien, told SPIEGEL that the Gas Commission has already recognized the problem. The Federal Government is now expected to develop a solution to limit the relief for households with high energy consumption. The commission report suggests a maximum number of kilowatt-hours. “The government must not ignore this task now, otherwise there is a risk of a social imbalance in the relief and potential for scandalization by populists,” Dullien warned.
In conclusion, the German government’s gas price cap is set to benefit wealthy households with high gas consumption the most, while the poorest households will receive a relatively small refund. The IMK has called for a solution to limit the relief for households with high energy consumption to avoid a social imbalance and potential scandalization by populists.
