# German gas commission agrees proposals to ease impact of soaring prices Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-10-10 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Germany's Gas Price Relief Plan: What You Need to Know Meta Description: Germany's expert commission suggests a one-off payment for gas bills and a price brake to help consumers cope with rising gas prices. Learn more here. URL: https://financedigest.com/german-gas-commission-agrees-proposals-to-ease-impact-of-soaring-priceshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-10-09t224558z1lynxmpei98097rtroptp4ukraine-crisis-germany-gas-1736815072247-compressed.jpg) BERLIN (Reuters) -Germany’s expert commission charged with drawing up plans to ease the impact of soaring gas prices on consumers agreed on a set of proposals early on Monday, sources close to the talks said. A draft of a paper seen by Reuters earlier showed the commission favoured the state giving households and businesses a one-off payment worth one month’s gas bill this year and a price brake from next March or April. The commission is still working on a separate scheme for big gas consumers in the industrial sector. In a second phase, the state could subsidize 60-80% of projected gas consumption, with [consumers having to pay the remainder at market prices](https://www.financedigest.com/france-leans-on-retailers-to-help-consumers-cope-with-food-prices.html "France leans on retailers to help consumers cope with food prices"), incentivising energy savings. The subsidized price could come in around 12-14 cents per kilowatt hour (kWh), according to the paper. If adopted, the scheme would be paid for by a 200 billion euro ($194 billion) relief package Chancellor Olaf Scholz’s government announced late last month to soften the impact of soaring energy [prices on Europe’s](https://www.financedigest.com/tesla-expands-discounts-with-price-cuts-in-europe-singapore-israel.html "Tesla expands discounts with price cuts in Europe, Singapore, Israel") largest economy. The commission will present an intermediate report at a news conference on Monday. The government is [expected to take over its main](https://www.financedigest.com/99-financial-firms-expect-benefit-open-banking-improved-customer-onboarding-main-driver-adoption.html "99% of financial firms expect to benefit from Open Banking, with improved customer onboarding the main driver of adoption") findings. An [economy ministry](https://www.financedigest.com/german-economy-expected-to-skirt-recession-economy-ministry-report.html "German economy expected to skirt recession – economy ministry report") spokesperson said it did not have a finalised concept yet. Experts say the upside of a one-off payment is that it [provides immediate relief](https://www.financedigest.com/recovery-bus-provides-cool-relief-for-s-koreas-covid-19-testers.html "‘Recovery bus’ provides cool relief for S.Korea’s COVID-19 testers"). The downside is that it provides no incentives to save [despite estimates](https://www.financedigest.com/recruiter-randstad-beats-q1-earnings-estimates-despite-hiring-slowdown.html "Recruiter Randstad beats Q1 earnings estimates despite hiring slowdown") that at least 20% of gas savings are needed to avoid shortages. The gas [price brake](https://www.financedigest.com/factbox-how-germanys-gas-price-brake-is-helping-reeling-industry.html "Factbox-How Germany’s gas price brake is helping reeling industry") takes longer to implement. (Reporting by Markus Wacket; Writing by Sarah Marsh and Paul Carrel; Editing by Cynthia Osterman, Robert Birsel) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---