Setting such rates "is solely the companies' affair" because the government could not pay for such measures, Gabriel told the regional newspaper "Neue Presse."

Noting that the biggest German power company E.ON had lowered its rates for some of those who earned less, Gabriel said: "We call on other companies to follow this example."

Number two RWE had committed itself to considering a similar measure, the minister added.

Since late last year, EON, in cooperation with the charity groups Caritas and Diakonie, has offered rebates to about 30,000 clients in southern Bavaria, the energy group said.

Gabriel also hailed a system in neighbouring Belgium, "where the first 500 kilowatthours are free, and payment only begins after this level has been surpassed."

German energy bills have risen sharply, and gas prices that have already gained 20 percent since the start of the year could go up by another 40 percent within a few months, according to widely-reported forecasts.

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