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A 鈥榟ardship fund鈥� for households heating with oil or wood pellets has been agreed by Germany鈥檚 coalition government, newspaper Handelsblatt . A total of 1.8 billion euros have been earmarked for the aid, which will be financed from the government鈥檚 200 billion euro 鈥榬elief package鈥� aimed at helping struggling households to deal with skyrocketing energy prices. The assistance 鈥� in the form of a price brake 鈥� is meant to be provided retroactively between 1 January and 1 December 2022, with households that saw their bills doubled compared to 2021 eligible to receive up to 2,000 euros in aid. Additionally, the government parties鈥� parliamentary groups have decided to provide money for small and medium-sized businesses (SMEs) if they also heat with oil, pellets or liquefied gas, according to Handelsblatt.

The state of Bavaria has announced its own 鈥渉ardship fund鈥� to help households and businesses cope with rising energy prices. It specifically aims to address 鈥渇inancial gaps鈥� not covered by the federal government鈥檚 three relief packages and defence shield, which initially did not include heating with oil and wood pellets. Price brakes for gas and electricity consumers were announced in September and will see the government grant customers a fixed volume of supplies at reduced rates. Across the European continent, rising energy prices and inflation are putting citizens and economies under pressure. Economists have warned that Germany is headed into a recession. The energy price brakes are set to be formally approved on 16 December.