The federal cabinet approved the one-off payment for gas customers worth billions on Wednesday. Specifically, as part of the “emergency aid” in December, consumers will no longer be obliged to make the contractually agreed advance or down payment.

According to a paper, the federal government anticipates costs of nine billion euros for the emergency aid. Taxation was waived, partly because of the bureaucracy involved.

The following is planned for tenancies: According to the paper, the relief for the landlord is to be passed on to the tenants with the utility bill for 2022. Tenants who have already made increased advance payments for operating costs since spring 2022 are to be released from the obligation to pay the increased amount in December.

In the case of new contracts, it can be assumed that discounts adjusted to current energy costs have already been agreed. “Here, in December 2022, the tenant will be released from the obligation to pay the deduction at a fixed rate.”

Federal Council still has to agree

The corresponding draft law on “emergency aid” is now going into parliamentary deliberations. According to the paper, the Bundestag should agree on November 10th and 11th, the Bundesrat on November 11th – a special session is necessary for this. By the beginning of November, procedures and regulations for determining the advance payment to be reimbursed should be clear. By mid-November, the suppliers are to determine the advance payment to be reimbursed. The details of the December emergency aid should be known on the websites of the natural gas suppliers by November 21st. On December 1st, the suppliers are to receive reimbursement of the deductions from the state.

The emergency aid is intended to serve as a bridging measure until the introduction of the gas price brake for households in March. However, the federal government is aiming for retrospective relief as of February 1, as stated in a federal government paper. Exactly what that means is unclear. The suppliers had made it clear that a gas price brake could not be created before March.