Germany to hit consumers with new energy levy – media

Berlin wants households and industries to help fund a €3 billion emergency gas reserve Germany plans to make households and businesses pay for a national emergency gas reserve costing more than €3 billion over ten years, German media reported Wednesday, citing draft legislation.

First proposed in July, the 24 TWh reserve would equal 10% of Germany’s storage capacity, or two weeks’ winter consumption, protecting against import disruptions.

The Economy Ministry initially proposed funding it through household and industrial levies rather than the federal budget, but the plan stalled after governing coalition lawmakers rejected this notion, citing already excessive energy costs.

Industry associations also demanded state funding.

However, media reports claim that despite the backlash, the ministry is pressing ahead with its initial plan.

An October 12 draft leaked to Handelsblatt and other outlets estimates the reserve at €3.08 billion ($3.4 billion) over ten years, enough to replace Germany’s largest gas import facility for 30 days.

Unlike seasonal storage, the government-controlled stockpile would be off-limits commercially, reserved for crises including sabotage and infrastructure failures.

It would not lower gas prices.

Read more Germany to hit its industry with more energy tariffs Starting in October 2027, households would pay an extra €3.77–€7.20 ($4–$8) annually through gas bills to fund the reserve.

Total yearly costs are estimated at €247 million to €308 million, with households and commercial users covering 40% and industry the remaining 60%, although how much individual industrial consumers would pay remains unclear.

Final costs will depend on gas purchases, storage, transport, financing, staffing, and operating expenses.

Germany’s state-owned gas market manager, Trading Hub Europe (THE), would set the levy annually rather than the federal government.

Energy Minister Katherina Reiche previously considered budget funding or a hybrid model.

However, severe budget constraints reportedly prompted the ministry to stick to its initial plan of 100% consumer funding.