Controversial gas transit fee: Germany caves under pressure

The German government said on Thursday (30 May) it will remove a controversial surcharge on gas passing through the country which EU neighbours said added to the cost of moving away from Russian gas.

When Germany raced to fill its gas storage facilities in response to the 2022 energy crisis, most of the gas was bought at more than five times today’s value. To recoup this spending, Berlin began charging a surcharge on all gas transiting through its network, which will rise to €2.50 per MWh from 1 July.

Neighbouring countries say the charge – which adds almost 10% to the cost of wholesale gas – is a barrier to moving away from Russian gas. Austria and Czechia, both land-locked countries, rely on gas imported through German territory and have been campaigning against the scheme.

Going into a meeting of EU energy ministers in Brussels on Thursday morning, German state secretary Sven Giegold announced that from 1 January 2025, the charge will be abolished. 

“This will support the integration of European energy markets,” he explained, adding that the intention of the scheme had never been to block the move away from Russian gas.

Berlin switched from months of ardently defending the charge to abolishing it almost overnight so because it “listens to its neighbours,” Giegold said. Austria, Czechia, Hungary, and Slovakia had tabled a special discussion point to raise the issue repeatedly. 

Barring any legal changes, the entire cost of keeping high gas stocks is now likely to fall on German consumers, rather than other EU countries.

Before the charge is abolished, there will first be a pre-planned six-month increase of 34% on 1 July. 

For Eastern Europe, the beginning of 2025 is a key date because the pivotal gas transit agreement between the Kremlin and Ukraine will expire – which could see gas deliveries to Austria, Hungary, Slovakia and Czechia disrupted.

With the gas transit charge abolished, gas from western Europe imported through Germany should come at a similar cost as deliveries from Russia – making it easier for countries to shift away from Russian supplies.

[Edited by Donagh Cagney/Zoran Radosavljevic]

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