German gas users will not be forced to bear increasing energy bills on their own, according to Chancellor Olaf Scholz, who vowed relief measures to safeguard low-income households in parallel with a state rescue arrangement for utility Uniper (UN01.DE).

Welfare and housing benefit reforms, including the addition of a heating cost component, will take effect next year, Scholz stated at a press conference in Berlin.

The revisions are intended to help soften increased energy bills if Uniper is permitted to pass on extra expenses to customers beginning in September or October, according to Scholz, who warns that the rises will ultimately affect everyone.

Scholz said that details would be addressed with representatives from business organizations and labor unions in mid-September.

Uniper got 15 billion euros ($15.2 billion) in guarantees and equity on Friday, as the German government intervened to preserve the gas importer, which has become the greatest victim of Europe’s energy crisis so far. 

However, the bailout would not serve as a template for possibly rescuing other energy providers, according to Scholz, who added that the federal government will do all possible to stabilize the market amid the surge in purchasing costs.

Source: Reuters

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