Thursday, December 19, 2024
HomeE.U.Germany to cancel controversial gas transit fee

Germany to cancel controversial gas transit fee

Germany gas tariff was set to be abolished on 20 December following a request from German chancellor candidate Friedrich Merz, Euractiv reported.

When Germany promptly filled its gas storage facilities in 2022, it had to pay a multi-billion-dollar bill. To recover the costs, all gas entering the country was subject to a duty. Gas passing through from Western European LNG terminals was also affected.

Neighbouring EU countries complained, saying the charge was hindering the substitution of Russian gas. Consequently, Berlin promised to abolish the regulation from 2025.

When the German government collapsed in November, so did the parliamentary majority needed to pass the law change. A source said that Merz, a contender for chancellor, insisted on supporting the law change at a CDU group meeting on Tuesday, 17 December. He cited the need to maintain good relations with EU neighbours the Czech Republic and Austria.

The Greens and SPD also want to abolish the transit fee, which means that with the CDU backing the move, a majority in parliament supports the move. German MPs will vote on whether to approve the changes on Friday.

The Austrian government stated that the fee, currently at €2.5 per MWh, had already cost the country €60 million and would amount to €750,000 a day if Russian gas supplies stopped.

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