FRANKFURT, (Reuters) – Two policymakers in Germany told Reuters that the government is intensifying efforts to assist consumers affected by rising wholesale prices for energy. This has already started to affect low-income households.

Germany is not unlike many other countries. Germany saw historically high prices for energy, and European carbon emissions permits. This was triggered by COVID-19’s lifting and subsequent demand from depleted natural gas stocks.

In remarks that were published on Sunday, Kevin Kuehnert, general secretary of centre-left Social Democratic Party (SPD), stated: “We are working hard on solutions to households currently facing difficulties.”

“Our commitment has been to protect individuals on a restricted budget from being caught up in global and social changes,” he said.

Kuehnert stated that the government prefers “unbureaucratic, prudent” solutions tailored for individual needs.

Last month, the SPD chancellor Olaf Scholz led the formation of the coalition government. This includes both the conservative and pro-spending Greens as well the more fiscally conservative Free Democrats (FDP).

The Federal Ministry of Building, which was just installed, has not yet provided the one-off heating support payment promised by coalition agreements to assist a few hundred thousand households who receive housing benefits.

Christian Lindner, Finance Minister of FDP, promised Thursday to make appropriate finance available.

The heating bills of households that are entirely dependent on income support (Hartz IV) will be paid in full.

German households heat their homes with half using gas and one quarter with electric.

Steffi Lemke from the ministry for environment and consumer protection said to Reuters, “I will clamp down on suppliers that try to profiteer off contract expiries and competitor insolvencies, and people moving houses.”

Prices for new contracts in this category have doubled.

Lemke said that “even if procurement prices rise, such terrible price increases aren’t justified.”