High energy prices: the federal government is working on a new levy

Created: 07/01/2022, 21:08

Because of the high energy prices, the traffic light is planning a surcharge that is intended to mitigate price jumps.

Berlin - Energy prices are rising because of the Ukraine war.

Economics Minister Robert Habeck (Greens) has already called for energy saving.

With a new mechanism, the federal government could distribute sharp gas price increases more fairly among consumers.

A draft for an amendment to the Energy Security Act envisages a pay-as-you-go system as an additional option.

This means that the burden can be distributed “more evenly” across all consumers, according to the draft.

This was available to the German Press Agency and the Reuters news agency on Friday (July 1).

Traffic light plans levy: Price jumps in gas distributed “more evenly” to consumers

In concrete terms, it is therefore a matter of compensation financed by way of a levy.

Gas importers, who are currently heavily burdened by the severe cutbacks in Russian gas supplies, would get this because they cannot pass price jumps on to customers.

According to the dpa, there was talk in government circles that it was not yet a final draft.

New instruments are being sought to prevent heavy burdens for gas customers in the event of a gas shortage.

The existing Energy Security Act allows utilities to have a “right to adjust prices”.

To do this, the Federal Network Agency must have formally determined a “considerable reduction in the total volume of gas imported into Germany”, which has not yet happened.

If the mechanism is activated, suppliers could pass on their current additional costs to their customers within a short period of time.

However, this could have very different consequences for customers, depending on which supplier they get gas from.

High energy prices: the federal government is working on a new levy © Kay Nietfeld / dpa

Robert Habeck (Greens) and traffic lights are planning a levy: Broader distribution of energy prices among consumers

In energy industry circles it was said that the advantage of a pay-as-you-go system for consumers would be a broader distribution.

The state could pre-finance the financial compensation for the gas importers.

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There was a levy procedure for the EEG levy to promote green electricity.

The levy on the electricity bill has been abolished since this Friday in order to relieve consumers.

The head of the municipal utility association VKU, Ingbert Liebing, told the dpa: "From a pragmatic point of view, we support a levy solution as a further option.

Of course, this new surcharge would have to be accompanied by social compensation.” “The legal framework for levying a surcharge on the gas price must be discussed thoroughly.

The traffic light should not allow itself to be rushed with such a serious intervention in market prices.

If the legal basis for this is created, there must be high requirements for their activation," said FDP energy expert Michael Kruse.

Germany's largest importer of Russian natural gas, Uniper, has encountered turbulence due to the severe cutback in Russian supplies.

The group is negotiating support measures with the federal government.

Uniper plays a central role in the German energy supply.

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According to its own statements, the company has only received 40 percent of the contractually guaranteed gas volumes from Gazprom since mid-June and has to procure expensive replacements.

So far, Uniper has not been able to pass on these additional costs - this results in significant burdens.

Economics Minister Robert Habeck made it clear on Thursday that he fears a complete lack of Russian gas supplies from Nord Stream.

From July 11, there is a threat of “a total blockade of Nord Stream 1,” said the Green politician.

That's why it can be really problematic in winter.

The gas supply over the summer is guaranteed.

On July 11, Nord Stream begins annual maintenance work, which usually lasts ten days.

Then no gas flows through Nord Stream 1. The big concern is that Russia will not turn on the gas tap again after the maintenance.

The head of the energy association BDEW, Kerstin Andreae, had said with regard to Uniper: "It must be ensured that the entire supply chain continues to function and not one component breaks out." This also includes the possibility of being able to pass on increased costs as quickly as possible.

The BDEW prefers a cost allocation solution that distributes the additional costs in times of crisis in solidarity.

Since the costs are only refinanced with a time lag via such a levy, the Federal Government should initially finance these costs in advance.

(dpa/df)