DON’T MISS
IamExpat FairIamExpat Job BoardIamExpat Webinars
Newsletters
EXPAT INFO
CAREER
HOUSING
EDUCATION
LIFESTYLE
EXPAT SERVICES
NEWS & ARTICLES
Home
Expat Info
German news & articles
Germany ditches gas levy in favour of 200-billion-euro energy price cap
Never miss a thing!Sign up for our weekly newsletters with important news stories, expat events and special offers.
Keep me updated with exclusive offers from partner companies
By signing up, you agree that we may process your information in accordance with our privacy policy

Germany ditches gas levy in favour of 200-billion-euro energy price cap

Never miss a thing!Sign up for our weekly newsletters with important news stories, expat events and special offers.
Keep me updated with exclusive offers from partner companies
By signing up, you agree that we may process your information in accordance with our privacy policy
or
follow us for regular updates:



Related Stories

Gas pouring out of Nord Stream pipeline leaks, accusations of sabotageGas pouring out of Nord Stream pipeline leaks, accusations of sabotage
Germany nationalises gas giant Uniper to avert energy sector crisisGermany nationalises gas giant Uniper to avert energy sector crisis
What does Germany's 65-billion-euro relief package mean for you?What does Germany's 65-billion-euro relief package mean for you?
Canada to return Nord Stream pipeline parts to Germany, defying sanctionsCanada to return Nord Stream pipeline parts to Germany, defying sanctions
Energy bills could rise in "four digit range" this winter, Habeck warnsEnergy bills could rise in "four digit range" this winter, Habeck warns
Germany triggers alert level 2 in gas emergency planGermany triggers alert level 2 in gas emergency plan
Russia's Gazprom to cut Nord Stream gas supplies to Germany by 60 percentRussia's Gazprom to cut Nord Stream gas supplies to Germany by 60 percent
Putin agrees to keep gas payments in euros, Germany saysPutin agrees to keep gas payments in euros, Germany says
For expats of all colours, shapes and sizes

Explore
Expat infoCareerHousingEducationLifestyleExpat servicesNews & articles
About us
IamExpat MediaAdvertisePost a jobContact usImpressumSitemapRSS feeds
More IamExpat
IamExpat Job BoardIamExpat HousingIamExpat FairWebinarsNewsletters
Privacy
Terms of usePrivacy policyCookiesAvoiding scams

Never miss a thing!Sign up for expat events, news & offers, delivered once a week.
Keep me updated with exclusive offers from partner companies
By signing up, you agree that we may process your information in accordance with our privacy policy


© 2025 IamExpat Media B.V.
© 2025 IamExpat Media B.V.
Sep 30, 2022
Abi Carter

Editor in chief at IamExpat Media

Abi studied German and History at the University of Manchester and has since lived in Berlin, Hamburg and Utrecht, working since 2017 as a writer, editor and content marketeer. Although she's happily taken on some German and Dutch quirks, she keeps a stash of Yorkshire Tea on hand, because nowhere does a brew quite like home.Read more

In a bid to shield consumers from rising energy costs, the German federal government has announced it will ditch plans for a gas levy and instead spend up to 200 billion euros on a gas price cap. 

Gas levy out, gas price cap in

“Prices have to come down,” Chancellor Olaf Scholz told a press conference in Berlin on Thursday. He was joining via video, having recently tested positive for COVID. “That is our conviction… For them to come down, we will need a big defence shield.” He explained that the new 200-billion-euro relief package would include a gas price cap and a windfall tax on the huge profits being made by some energy companies. 

As was widely expected, the new approach means that the government will abandon plans for a gas levy, which would have seen an additional tariff of 2,419 cents per kilowatt hour added on to the price of gas. On Wednesday, responding to the spiralling electricity and gas prices that are redoubling pressure on consumers, Germany’s 16 federal states had urged the government to shelve plans for the levy and instead introduce a price cap. 

Scholz explained that the price cap would mean no extra financial burden for pensioners, workers, families and small businesses who are struggling with their bills. The money for the cap will come from the federal government’s economic stabilising fund, which was set up in 2020 to help support businesses during the coronavirus pandemic. 

German government promises VAT reduction and energy windfall tax

Exactly how the gas price cap will be implemented is as yet unclear. Federal Economics Minister Robert Habeck said that an expert commission would be appointed and would soon make a proposal, which could then be discussed and implemented by the government.

Ministers said at the press conference that the cap would bring prices down “to a level where private households and companies are protected from being overloaded.” The state will then make up the difference between the capped price and the prices paid by gas importers. 

It was also announced that the government will work to reduce the price of electricity with a new windfall tax. This would see companies profiting during the current crisis required to hand over a portion of their profits if they do not generate power. 

The government’s previous plan to reduce VAT on gas from 19 down to 7 percent, announced earlier this month, will go ahead as planned. 

By Abi Carter