Germany's conservatives, SPD set to scrap gas storage levy
Germany's conservative CDU/CSU and Social Democrats (SPD) have agreed to abolish a gas storage levy for all consumers in a bid to lower energy prices, according to a preliminary document seen on Wednesday.
Berlin introduced the measure in 2022 to cover the high costs of replacing Russian gas after Moscow cut deliveries. However, due to pressure from Germany's neighbors, the government decided to apply the levy exclusively to German consumers.
Last week, Germany's industry body BDI called for adjusting the levy to lower natural gas prices in Germany and bridge the cost gap for industry compared to foreign competitors.
"We are abolishing the gas storage surcharge for everyone. We will introduce appropriate instruments to ensure secure and more cost-effective gas storage refills," the document of the two parties' working group said, without pinning an exact date for the plans.
Abolishing the levy would cost the government approximately €4.1 B ($4.4 B) if implemented in the second half of the year. However, this financial decision still requires approval from the top party leaders.
Energy companies have been also demanding lower national storage targets and introducing more flexible EU-level requirements, saying the rigid legal mandates were distorting the market and creating counterproductive incentives.
($1 = €0.9273)
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