Gas and electricity prices: the hard-to-understand brakes

Dear readers,

the brake on gas and electricity prices is ready. Do you understand what exactly the Ministry of Economy has done with its boss Robert Habeck and how it should work? Between gross labor prices, base quotas and price guarantees, it’s not so easy to keep track. This €200 billion aid package, which the federal government is placing under the nation’s Christmas tree, is perhaps the largest in the country’s history.

It took two months to complete this package. Or, as my colleague Andreas Niesmann puts it: “A panel of experts, business representatives, social organizations, scientists, members of parliament, even prime ministers wanted to speak out for what is probably the biggest bailout package ever from the federal government. its population should be created’.

To understand what exactly relieves and, most importantly, how, I recommend the following three texts:

  • To the just-cited colleague Niesmann explains in this comprehensive texthow brakes should and should work, what this means politically and also sheds light on the so-called regulation of hardship for those heating with oil or pellets.
  • To translate the decided brakes into numbers, written by Frank-Thomas Wenzel, how much money families and singles should save now. But be careful: these are average prices.
  • And finally Andreas Niesmann comments again “An early Christmas present from the traffic light” and says: “The result is quite impressive – and yet the coming months will be painful for many people. For gas alone, average households must pay a high three-figure sum a year, even if prices are held back. When it comes to electricity, groceries and rent, it doesn’t look much better.

tip of the week

From less than one percent at the beginning of 2022 to more than 4 percent this fall, the growth of interest in construction in Germany is historically unique. This has significant implications for many construction projects or planned real estate purchases.

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Because if you want to complete the further financing of your property at this time, sometimes you have to accept significantly worse terms. There is a risk of additional financial burden and, in the worst case, insolvency. But it doesn’t have to be, writes my colleague Sebastian Hoff. He has advice for those currently paying off their property.

There is scaffolding on a single-family house under construction.

It’s not easy for anyone currently paying off property, especially when follow-up financing is needed.

Please pay!

And again on the topic of real estate. 180 million euros: That much money is still in the subsidy pot for the so-called Baukindergeld. This support for young families who want to buy or build a home ends at the end of the year. But not all funds have been claimed yet – and if you’re quick, you can still secure your money. Prerequisite – from 2018 January 1 until 2021 March 31 the family signed a sales contract or obtained a building permit and moved into a new house by the end of December. By the way, Federal Buildings Minister Klara Geywitz (SPD) is developing a successor that will target low- and middle-income families.

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Good news

Everything is getting more expensive. Is that really it? No, Benedikt Schneebecke is not aware of any significant price increases. Schneebecke is the first president of the Natural Christmas Tree Association and says that green trees will probably cost the same this year as last year. “You really have to pay higher prices in big cities like Hamburg or Munich, and cheaper ones in the country,” said M. Schneebecke. So there are differences, individual price increases cannot be ruled out. However, in general, the price of wood at the festival should remain stable.

Benediktas Schneebecke, chairman of the newly founded Natural Christmas Tree Association, campaigns for a real tree option.

Benedikt Schneebecke, Chairman of the Natural Christmas Tree Association.

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As it is in years of inflation and crises. This good news also has a catch. Schneebecke also predicts an increase in Christmas tree prices for the coming year. Because The country of Christmas trees, Germany, as the biggest exporter in Europe, has a problem with the youth.

Do you have any comments or questions? Please write to us [email protected]!

Yours Ansgar Nehls

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