The German government plans to apply a cap on gas prices, which will come into force in March 2023, retroactively from January next year, according to government sources on Tuesday.

Customers will be relieved retroactively for the months of January and February to the same extent the cap allows, the sources said, as first reported by Spiegel Online.

Private households and small companies will now benefit from the cap for all of 2023 until the end of April 2024.

A price brake for industry is to kick in from January.

Funds for the measure are to come from a 200-billion-euro “defence shield” announced by the government to pay for its response to the energy crisis.
Source: Reuters (Reporting by Riham Alkousaa, Editing by Miranda Murray)