THE GERMAN POWER INDUSTRY UNDER CONDITIONS OF ENERGY CRISIS: THE PRICE OF RELIABILITY. PART 2

The first part of the paper includes a discussion on the impact the energy crisis had on the German power industry and what measures the government has taken to ensure a reliable energy supply. Reliability, efficiency and sustainability make up the «Triangle of Aims» of the energy policy of a country. The second half of the paper is dedicated to the measures that the federal government took during the acute phase of the energy crisis in terms of the second aim. We discuss three main aspects. Firstly, we show the changes in the structure of pricing for two categories of consumers: householders and non-household consumers. Secondly, we demonstrate the formation of the price on the electricity spot market. Lastly, we elaborate on the ways the government could influence the level of prices and to what extent these possibilities have been used in accordance with the rules of the European Union. The crisis showed the readiness of the government to take costly measures such as zeroing the taxes that are due under the Renewable Energy Act, giving a lump sum payment to the employed, the students and the pensioners, refusing to increase the cost of CO2 emission certificates, providing business benefits and subsidies and enforcing a gas and electricity price brake. For the period after the end of the «price brake», the government is considering subsidizing prices for export-oriented production that implements the climate goals. These plans confirm the existence of the «shadow budget» that was formed for overcoming the consequences of the pandemic.