Germany gets ready to spend $100 Billion/ Berlin's energy subsidy plan/Europe energy crisis

 Germany gets ready to spend $100 Billion/ Berlin's energy subsidy plan/Europe energy crisis 

Germany has spend up to 200 billion euros. Olaf has requested this such huge amount to reduce price of gas. This time around German is facing gas shortage and is probably going to have a harsh winter. In the case of Germany, it has decided to start offering subsidies and pay a part of the citizens energy bills. 

This strategy is to reduce the price of the consumer's, will it really ease the burden. 

Germany 99 euros billion energy support scheme.

The ultimate goal of the plan is this.

The energy consumption by companies has cut by minimum of 20 percent.

99 Billion euros package has two components.

56 billion euros to subsidise fossil gas and 43 billion euros for electricity.

Electricity: this subsidy, however is only applicable to 80 percent of their annual consumption.

For industrial customers, the limit is 13 cents plus taxes, duties and surcharges for 70 percent of their previous consumption. 

Gas: the prices of household is 12 cents gross per kilowatts hour from March 2023 to April 2024. 

The electricity price Cap's overly complex, unclear and bureaucratic design made it questionable whether support would reach customers quickly.

The largest economy in Europe is heading to recession. 

200 euros is not small amount, can Berlin finance this gigantic sum for 2 years straight.  

You let's us know in the comments.