K+S AG, Kassel, said on Dec. 19 its Board of Executive Directors has decided not to make use of the cap on electricity and gas prices as of Jan. 1, 2023, which was approved by the German Bundesrat (upper house of Parliament) on Dec. 16.
The German Parliament approved a cap for industry at €70 (approximately $74 at current exchange rates) per Megawatt-hour (MWh) for gas and €130 ($138) per MWh for electricity. The price breaks are to apply from March 2023.
K+S said it already had secured almost all of its natural gas requirements for the upcoming year in terms of price.
“With an average natural gas price of 5 cents per KWh for the volumes fixed by K+S for 2023 (90% of K+S’ natural gas requirements in Europe), the company has a high degree of predictability regarding energy costs,” the company said, adding that this will preserve its full ability to pay dividends.
K+S said it covers “large quantities” of its electrical requirements from its own production.