By Ed Frankl and Pierre Bertrand

 

Shares in German energy-intensive industrial firms jumped Monday after a commission chosen by the country's government proposed billions of euros in targeted measures to cap gas costs.

At 1425 GMT, chemical companies BASF traded 6.1% higher, Covestro climbed 8.9%, Lanxess was up 5.8%, Evonik rose 5.7%, and Wacker Chemie was up 5.2%.

Meanwhile, steelmaker Thyssenkrupp rose 6%, and construction-materials manufacturer HeidelbergCement was up 6.5%.

Under the proposals, larger industrial companies would from January 2023 until spring 2024 pay 7 European cents per kilowatt hour for the first 70% of their equivalent 2021 gas consumption, with market rates being paid above that.

The German government said the plans drawn up by the commission were a good basis and said it would examine the measures quickly.

The proposals, including separate help for households and smaller businesses, would cost around 96 billion euros ($93.5 billion), according to commission member Michael Vassiliadis, forming part of a EUR200 billion package from the German government to help consumers and industry deal with soaring gas prices.

 

Andrea Thomas contributed to this article.

 

Write to Ed Frankl at edward.frankl@dowjones.com and Pierre Bertrand at pierre.bertrand@wsj.com

 

(END) Dow Jones Newswires

October 10, 2022 10:50 ET (14:50 GMT)

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