Companies and private households are set to pay less for natural gas starting next year. On Wednesday, the federal government decided to abolish the gas storage levy of 0.3 cents per kilowatt hour, as announced by Economics Minister Katherina Reiche (CDU). An average four-person household that uses gas will thus save up to 60 euros per year. The total savings are expected to amount to 3.4 billion euros.
The abolition of the levy had been agreed by the CDU/CSU and SPD in their coalition agreement. On Wednesday, the German Association of Energy and Water Industries (BDEW) warned that the regulations necessary for implementation must now be enacted “in good time”: for relief to take effect from next year, the law must come into force by the end of October.
The gas storage levy was introduced during the 2022 gas crisis to ensure security of supply. The energy industry was thus obliged to fill gas storage facilities with expensive gas, and the additional costs incurred were passed on to end consumers. In future, these costs are to be financed from the state budget. On Wednesday, the BDEW criticized the fact that the money is to come from the Climate and Transformation Fund. This fund “must live up to its name and be used for investments in climate protection and transformation.”
The Association of Municipal Companies (VKU) also criticized this. It also criticized the fact that only gas customers would benefit from the abolition of the levy. “As long as the federal government only reduces the electricity tax for the manufacturing industry and agriculture, all other electricity customers will be left empty-handed.”
The approach of reducing gas prices while leaving electricity prices relatively high contradicts the goals of climate neutrality and independence from fossil fuel imports from abroad. “For both, our country needs more electricity applications instead of fossil gas,” explained the VKU. If only gas prices are reduced, this will create a false sense of security among gas customers and a rude awakening, for example, with regard to the foreseeable further rise in CO2 prices.
Julia Verlinden, deputy leader of the Green Party in the Bundestag, also criticized the fact that people who had invested in climate-friendly electric mobility and heat pumps were being “let down.” They had been promised a reduction in electricity tax – “instead, the money is now flowing into fossil fuel heating systems”. The federal government is thus unsettling the market and delaying the switch to climate-friendly technologies, for which the industry and trades are prepared.
From breaking news to thought-provoking opinion pieces, our newsletter keeps you informed & engaged.
