The German federal government is planning a relief package of approximately €3.4 billion for natural gas customers by the end of 2025. This measure is outlined in a draft bill proposing the abolition of the natural gas storage levy, as reported by the “Rheinische Post.
The initiative, spearheaded by both the governing coalition partners, aims to offset costs for gas customers using funds from the oversubscribed Climate and Transformation Fund (KTF). This fund also supports energy-efficient building renovations, heat pump subsidies and climate protection contracts with industry.
The draft legislation is slated for cabinet approval this Wednesday. According to the explanatory notes within the draft of the Fourth Amendment to the Energy Industry Act, the government intends to alleviate the burden of high natural gas prices on German businesses and private consumers. The plan involves the federal government absorbing the costs associated with refilling natural gas storage facilities in 2022, previously passed on to network operators and ultimately end consumers through the levy.
The natural gas storage levy was introduced in 2022 during the energy crisis to ensure security of supply, requiring energy companies to fill storage facilities. The supplementary costs incurred were subsequently passed on to consumers. The Ministry for Economic Affairs estimates that a household of four could see a yearly relief of up to €60 in 2026, depending on gas consumption, with the levy previously standing at €2.89 per megawatt hour.