Gas storage charge rises to 2.50 euros for each megawatt hour starting in July.
The gas storage levy, which has been in effect since July, will increase from its current rate of 1.86 euros to 2.50 euros per megawatt hour. This news was shared by Trading Hub Europe GmbH (THE), who explained this hike is necessary to cover the costs of operating Germany's gas storage facilities.
This levy was first implemented in 2022 at a rate of 59 cents per megawatt hour due to geopolitical tensions affecting the energy market. At that time, the government set minimum filling requirements to ensure adequate gas reserves during the winter months.
THE highlighted the significant difference between the high prices paid for gas in 2022 and the substantially lower prices at which it was subsequently sold. This fluctuation occurred due to global market developments and a decrease in gas consumption within Germany.
Specifically, approximately 50 terawatt hours of gas were purchased in 2022 at an average price of around 175 euros per megawatt hour. Between the 2022/23 and 2023/24 winters, just over 12.5 terawatt hours of that gas was resold at an average price of 77.50 euros per megawatt hour. The remaining gas was carried over and sold at the significantly lower rate of 48.50 euros per megawatt hour.
These gas purchasing and selling activities were conducted in close partnership with the Federal Network Agency and the Federal Ministry of Economics. The new cost for the gas storage levy is set to remain in place until the end of 2024, after which a new rate will be determined. The levy's price is determined through a complex methodology intended to create financial equilibrium.
For a household with a yearly energy consumption of 20,000 kilowatt hours, the levy will lead to an extra annual expense of 50 euros. Previously, this fee was around 37 euros. Value-Added Tax (VAT) is likewise applied to both of these amounts. The Gas Storage Act currently has an expiration date of March 2025, but an extension for another two years is being considered.
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The current increase in the Gas storage levy from 1.86 to 2.50 euros per megawatt hour, effective from July, will impact the gas price for consumers. This rise is attributed to the need to cover operational costs of Germany's gas storage facilities. In contrast, during the 2022/23 and 2023/24 winter seasons, gas was resold at an average price of 77.50 euros per megawatt hour, significantly lower than the initial purchase price of around 175 euros per megawatt hour.
Source: www.ntv.de
