Scholz, EU's Michel talk mechanisms to tackle energy prices!

German Chancellor Olaf Scholz lost his usual coolness over a fierce exchange about energy costs in Germany's lower house of parliament on Wednesday.

The budget debate got heated as the leader of the main opposition party, the Christian Democrats (CDU), accused Scholz and his coalition partners of failing the German people amidst an energy crunch and soaring inflation.

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The usually composed German leader told house members: "Don't underestimate our country, don't underestimate the citizens of this country."

Scholz countered that it was the CDU's Angela Merkel government who left Germany in a precarious position, accusing her administration of actively blocking the development of renewables. CDU-led ministries found it no problem at all that the storage facilities for gas in this country were empty last year, he added.

"We made sure that this changed with laws and regulations that we put in place. They didn't even manage in the opposition to blame their own failure as a problem on the new government, we had already solved it, before they even realised that there was one. That's the truth we need to talk about."

On Sunday, Scholz presented Germany's third relief package worth €65 billion, which is intended to reach as many Germans as possible.

Among other things, an electricity price brake is planned, which will provide consumers with a fixed amount of electricity at a price capped by the state.

The whole thing is to be financed, among other things, by skimming off "windfall profits" from energy companies that produce cheap electricity.

In neighbouring Austria, the conservative-green government passed regulations on electricity price brakes, which will come into force in December, and should relieve households until June 2024.

Under the plan, the electricity price will be capped at ten cents per kWh, and could bring households a relief of about €500 a year.

'Many, many, many billions' third German relief package approved after hours of negotiations. Germany’s governing coalition has agreed on a new €65 billion relief package to help its citizens cope better with the rising cost of energy and inflation. It's following 22 hours of negotiations after it struggled for weeks to come up with a third relief fund.

The German Chancellor stressed that, "it's about €65 billion if you add it all up, it's about €95 billion if you include the first two relief packages."

Olaf Scholz hopes to skim off the windfall profits from energy companies to help pay for it. The so-called excess profits tax has also been discussed at the European level for weeks.

"Many, many, many billions"
He said he hoped "many, many, many billions" would make a massive difference, adding that he would use "what we raise to relieve the burden on citizens and ensure a basic supply of electricity at cheaper prices."

It's the gas-fired power plants which currently determine the high market price. And those which don't use gas to make electricity, are increasing their prices, consequently making a lot of money.

So a revenue cap on the electricity market will be created. It'll affect producers of renewable energy such as wind, solar, and hydro power plants.

However currently there are no plans to tax the increased profits of oil companies to help subsidise fuel prices for German drivers. But pensioners and students will receive a one-time energy allowance of €300, and the standard rates for the needy and child benefit will be increased.

And there will be also a successor to Germany’s popular 9-Euro-Ticket, which was originally only supposed to allow unlimited travel within the country for three months.

While the government is yet to announced the new price for the tickets, it could cost between €49 and €69 per month, a considerable jump from its previous price tag.