German Environment Min Calls For Rebates By Power Companies

German Environment Minister Sigmar Gabriel Friday urged energy producers to set reduced electricity and gas rates for low-income households that are being crushed by climbing prices.
Παρ, 13 Ιουνίου 2008 - 05:25
German Environment Minister Sigmar Gabriel Friday urged energy producers to set reduced electricity and gas rates for low-income households that are being crushed by climbing prices.

Setting such rates "is solely the companies' affair," because the government could not pay for such measures, Gabriel told the regional newspaper "Neue Presse."

Noting that the biggest German power company E.ON AG (EONGY) had lowered its rates for some of those who earned less, Gabriel said: "We call on other companies to follow this example."

The second largest power company, RWE AG (RWE.XE) had committed itself to considering a similar measure, the minister said.

Since late last year, EON has in cooperation with the charity groups Caritas and Diakonie offered rebates to about 30,000 customers in southern Bavaria, the energy group said.

Gabriel also hailed a system in neighboring Belgium, "where the first 500 kilowatt-hours are free, and payment only begins after this level has been surpassed."

German energy bills have risen sharply, and gas prices that have already gained 20% since the start of the year could go up by another 40% within a few months, according to widely-reported forecasts.