Germany Waives Gas Storage Fee for Foreign Consumers

Germany's parliament passed a law waiving the gas storage fee at border and trading points from January 1, 2025. This change addresses compatibility issues with European energy solidarity, assisting neighboring countries to diversify gas sources away from Russian dependency. The fee for domestic buyers will increase by 20%.

Germany's lower house of parliament approved a significant change to the country's energy law on Friday, aimed at waiving a gas storage fee for foreign consumers from January 1, 2025. This move liberates them from a costly price component applied at border points and virtual trading hubs.

The legislative change was motivated by the levy’s incompatibility with European energy solidarity principles. It aims to assist southwestern neighbors in diversifying their gas supply, particularly reducing their reliance on Russian gas. The bill garnered a majority vote in parliament.

The new law will be effective from January 1, 2025. Meanwhile, domestic gas buyers will face a 20% increase in the levy enforced by Trading Hub Europe (THE), amounting to 2.99 euros per megawatt hour. This development marks an essential step in the transformation of Germany's energy market.

(With inputs from agencies.)