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0 pointsArchelaos2y ago0 comments

The German government is subsidising gas consumption by industry very heavily at the moment to prevent this.

A press release on the relevant legislation can be found here (in German): https://www.bundesregierung.de/breg-de/aktuelles/energieprei...

The most important section in this matter reads in English translation as follows:

"From January 2023, industrial customers will receive 70% of their natural gas consumption in 2021 from their suppliers at a guaranteed 7 cents per kilowatt hour. For heat consumption, the price will be capped at 7.5 cents per kilowatt hour, also for 70% of consumption in 2021. For the remaining consumption, industry will pay the regular market price."

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nradov2y ago

Right but that level of subsidization is unsustainable. What is the end game? Cheap Russian natural gas is unlikely to return soon enough to save the German chemicals industry.

ArchelaosOP2y ago

Since the beginning of the year, the wholesale gas price in Europe has already returned to the level seen before the Russian-Ukrainian war.

See: https://www.bundesnetzagentur.de/DE/Gasversorgung/aktuelle_g... (in German)

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