German regulators investigate possible abuse of energy price caps

Germany’s Federal Cartel Office has launched an investigation into energy suppliers over possible abuse of price caps introduced by the federal government to limit the impact of high energy prices on households and businesses. The office announced the investigation in a press release today. It said the first phase of the investigation is focusing on suppliers that have applied for state compensation for gas deliveries.

Last year, the German government set aside 200 billion euros (roughly CZK 4.7 trillion) to stabilise energy prices. Gas and electricity prices at some suppliers have still not fallen below the government’s caps, despite a significant drop in global prices compared with last summer. This has raised concerns that some suppliers are keeping prices artificially high to benefit from state support, Reuters reported.

“The state is spending substantial sums to ease the financial burden on consumers and industry. It is our task to protect the state from abuse,” said Andreas Mundt, president of the Federal Cartel Office.