Price caps & Co.: This is how European countries are taking action against high energy prices

Electricity and gas have been getting more and more expensive since last autumn.

Because of the Russian invasion of Ukraine, the EU Commission estimates that prices will remain high this year.

Countries in Europe are dealing with this differently: some are more focused on targeting low-income households, which are hit the hardest.

Other countries have temporarily reduced taxes for everyone or implemented several measures to relieve consumers as much as possible.

What is controversial in one country - such as a price cap - has long been decided elsewhere.

Germany

has so far decided on two relief packages.

A central building block is the abolition of the EEG levy to promote green electricity via the electricity bill from July.

In addition, every employed person subject to income tax should receive a one-time gross payment of 300 euros.

The energy tax on fuels is to be reduced to the European minimum for three months.

At the same time, cheaper public transport tickets will be available for three months from June.

There is a heating subsidy for financially weak households, and a higher commuter allowance for long-distance commuters.

In addition, there are surcharges for families with children and higher tax exemptions.

Above all, the government in

wants to significantly reduce taxes on gas and electricity for private users and small businesses.

In addition, tax breaks for commuters are to be expanded.

France

had already capped electricity and gas prices in the autumn.

An energy check for 100 euros was also paid out to around six million low-income households.

In January, the government decided to limit the increase in electricity prices to four percent for 2022.

In

, VAT on electricity and gas was temporarily reduced from 21 to 6 percent.

In addition, every household should receive a one-time payment of 100 euros, and those with low incomes will also receive a special rate until September.

Taxes on diesel and petrol were reduced by 17.5 cents per liter.

The

has reduced the energy tax once and also wants to reduce the value added tax on energy from 21 to 9 percent from the summer.

Taxes on petrol and diesel were also reduced by 21 percent.

Households with very low incomes are to receive a one-time allowance of EUR 800 each.

In

there has been a government cap on energy prices for private households for some time, but the cap was lifted on April 1st.

All private households are also to receive a one-time waiver of 200 pounds (around 240 euros) on their energy costs, but they have to pay this back to the government.

In

, households up to a certain annual income can count on a tax-free heat check of 6,000 kroner (around 800 euros).

The government in

wants to lower the fuel tax from June 1 to October 31 to the EU minimum level, and car owners should also receive a one-off payment of 1,000 to 1,500 crowns (94 to 141 euros).

The housing allowance for families with children is also to be increased.

Starting February 1,

The VAT rate for petrol and diesel was reduced from 23 to 8 percent.

Gas and fertilizers were also completely exempt from VAT for the same period.

In the

, the government has canceled road traffic taxes for cars, buses and trucks up to twelve tons.

At the same time, the obligation to add more expensive biofuel to gasoline and diesel was lifted.

In

, there has been a brake on additional housing costs since 2013.

Electricity and gas prices were reduced by 25 percent and have been frozen ever since.

The losses are borne by the energy companies, which Prime Minister Viktor Orban has increasingly nationalized.

In

, lower-income citizens received a one-time energy voucher of 150 euros, and large families received 200 euros.

Croatia

has permanently reduced VAT on gas from 23 to 15 percent, and even to 5 percent next year.

At the same time, there are subsidies for pensioners and other low-income groups, as well as tax relief for the electricity producer Hep.

The government in

has frozen consumer prices for electricity and gas in the first quarter of 2022 at the 2021 level.

also

capped the prices for electricity and natural gas at the end of March.

It is estimated that around three quarters of households will benefit from the electricity price cap.

The government has also decided on a multi-billion dollar subsidy package.

The government in

has been paying about a third of electricity bills since January.

In addition, all low-income pensioners will receive a one-time support of 200 euros this April.

In

, low-income households are to receive financial support for their electricity and gas bills from the second quarter of 2022, depending on their size and consumption.

In addition, there will be no network charges for consumers and there will be a reduction in VAT on gas bills.

The government recently also contributed 25 cents per liter of fuel at the pump.

Italy is financing these measures, among other things, by taxing the extra profits of the energy companies.

In

, customers will be refunded 20 cents per liter of petrol and diesel at petrol stations until the end of June.

Portugal

relieves citizens at the pumps with vouchers.

Both countries also want to cap the price for gas used in power generation and thus intervene in electricity pricing.

Since the price of electricity is currently dependent on the price of gas, they hope that this will reduce the electricity bills for citizens.

The proposal still has to be examined by the EU Commission.

Spain has already reduced VAT on electricity to ten percent in 2021.