Germany to restrict company access to gas levy proceeds - sources

Companies receiving aid through the levy should have at least 1% of the market share, the sources said. The draft bill, which is expected to be agreed by the cabinet by the end of September, also excludes companies that made profits and would impose restrictions on the salaries that managers receive if the company is benefiting from the levy, they added.


Reuters | Berlin | Updated: 20-09-2022 14:05 IST | Created: 20-09-2022 13:58 IST
Germany to restrict company access to gas levy proceeds - sources
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A draft law for Germany's gas levy draft law will impose restrictions on gas importers benefiting from its proceeds on the basis of their market share and profitability, three parliamentary and industry sources told Reuters.

Berlin plans to impose a gas levy on consumers from Oct. 1 aiming to help importers with the additional costs of replacing Russian gas. Companies receiving aid through the levy should have at least 1% of the market share, the sources said.

The draft bill, which is expected to be agreed by the cabinet by the end of September, also excludes companies that made profits and would impose restrictions on the salaries that managers receive if the company is benefiting from the levy, they added. Under the new restrictions, only Uniper, VNG and Gazprom's former subsidiary Gazprom Germania, which was abandoned by Gazprom and temporarily taken under the control of the German energy regulator, would benefit from the levy.

The economy ministry declined to comment on the details of the draft bill but said it would be put forward soon. Changes to the draft law came after politicians within the ruling coalition stressed that the levy proceeds should only go to companies in need.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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