Costs of the energy crisis: The federal government paid over 50 billion euros for relief

Electricity price brake, energy price flat rate, gas price brake: The federal government will be taking all sorts of measures in autumn 2022 to cushion the consequences of the Russian war of aggression on Ukraine in this country. In the end it will cost billions of euros - and there are still a few items missing.

According to a report in the “Süddeutsche Zeitung”, supporting consumers in the gas crisis after the start of the Ukraine war in 2022 cost the federal government more than 50 billion euros. The federal government spent a total of 50.4 billion euros to relieve citizens in the energy crisis and stabilize markets, the newspaper quoted from a response from the Federal Ministry of Finance to a request from the Greens parliamentary group.

The electricity price brake alone, decided in November 2022, cost 16.3 billion euros. This capped electricity prices for 80 percent of private consumers at 40 cents per kilowatt hour. The gas price brake, which limited the gas price to twelve cents per kilowatt hour in 2023, cost a further 14.3 billion euros. The emergency aid with which the federal government took over the advance payment for gas for one month in December 2022 cost 8.5 billion euros. According to the information, the energy price flat rate of 300 euros for pensioners cost more than six billion euros. Housing benefit recipients were supported with “hundreds of millions of euros”.

According to the report, the Federal Ministry of Finance lists 27 positions. According to the “Süddeutscher Zeitung”, for example, the VAT reduction is missing, with which the tax on gas was temporarily reduced from 19 to seven percent in August 2022. According to the report, the federal government had budgeted 3.3 billion euros for this, plus another almost three billion for states and municipalities.

After Russia's attack on Ukraine, the price of gas rose to more than 300 euros per megawatt hour. Russia tightened its gas supplies to Europe. Gazprom completely stopped deliveries to Germany through Nord Stream 1 on September 1, 2022. Shortly afterwards, both tubes were blown up in an attack.

Electricity prices also rose because gas is used to generate electricity. Large gas importers were no longer able to fulfill their supply contracts - the Düsseldorf-based Uniper group was rescued by the state. The Greens count this rescue as part of the total costs; With further measures they come to 71.7 billion euros.