A planned increase in Germany’s natural gas storage fee is sparking concerns across Central Europe, potentially raising energy costs for neighboring countries unless German lawmakers act swiftly, Bloomberg reports.
Trading Hub Europe (THE), Germany’s natural gas market manager, announced that the fee, used to cover the costs of refilling storage sites, will jump to €2.99 ($3.16) per megawatt-hour starting January 1st. This increase follows a previous hike to €2.50 in the second half of 2024.
The German government had been working to pass legislation eliminating the levy at its borders, but the recent collapse of the ruling coalition throws the future of this measure into doubt. While THE stated its calculations exclude interconnection points, assuming the legislation passes, the future of the fee remains uncertain should the parliament fail to act. A spokesperson for the German economy ministry stressed the urgency of passing the amendment before the February 23rd election, noting cabinet approval has already been granted.
The fee, paid by traders and utilities for gas transit through Germany, has drawn heavy criticism from countries like Austria, Slovakia, and the Czech Republic. They argue it significantly increases the cost of obtaining liquefied natural gas (LNG), particularly as Europe seeks to reduce reliance on Russian pipelines. Currently, the total cost of transporting gas through Germany to these neighboring countries can reach €3.50 per megawatt-hour – a figure that will rise further if the surcharge remains.
THE, operating under existing legal requirements, previously announced a November 20th deadline for publishing the new levy. The next adjustment to the gas storage fee is scheduled for July 1.
