Finance
Germany's neighbours demand year-end halt to gas levy
Published by Global Banking & Finance Review®
Posted on December 11, 2024
2 min readLast updated: January 27, 2026
Quick Summary
Austria, Czech Republic, and Slovakia press Germany to end a gas levy by year-end, citing energy security concerns amid political delays in Berlin.
Germany's Neighbors Urge Year-End Gas Levy Halt Amid Delays
By Kate Abnett
BRUSSELS (Reuters) - Austria, the Czech Republic and Slovakia have urged Germany to legislate this month to waive a costly gas levy for neighbouring countries, as the collapse of Berlin's coalition government risks delaying the law, a document seen by Reuters showed.
After complaints from central European countries, Germany agreed in May to scrap the tariff it charges neighbouring countries to buy gas from its reserves. Berlin introduced the measure to cover the high costs of replacing Russian gas after Moscow reduced deliveries in 2022.
But the collapse of Germany's coalition government has delayed the passing of a draft law that would restrict the tariff to apply to German customers only.
In a joint paper, Austria, the Czech Republic and Slovakia noted these delays, and said the scheduled expiry of a Russian deal to supply gas to Europe via Ukraine at the end of the year had made it more urgent that the German levy is scrapped.
"It is imperative to remove all the barriers standing in the way of our diversification efforts," the paper said, describing the levy as an "artificial increase" in prices that was hindering the countries' efforts to quit Russian gas.
"We once again appeal to Germany to ensure the earliest possible adoption of the amendment ... to abolish the application of the gas storage neutrality charge at the borders with neighbouring countries as of 1 January," it said.
The paper was circulated among EU countries, whose energy ministers will discuss the levy at a meeting in Brussels on Monday.
Central European countries are concerned about energy security and prices this winter. In recent weeks, cold weather and lower renewables generation pushed European gas prices to a 12-month high.
German system operator Trading Hub Europe has said the tariff will rise by a fifth next year, on the assumption that the levy is restricted to German customers only.
(Reporting by Kate Abnett; additional reporting by Vera Eckert; editing by Barbara Lewis)
Key Takeaways
- •Austria, Czech Republic, and Slovakia urge Germany to end gas levy.
- •Political delays in Germany risk energy security in Central Europe.
- •The gas levy is seen as a barrier to diversifying energy sources.
- •Germany's coalition government collapse delays legislative action.
- •EU energy ministers to discuss the levy in Brussels.
Frequently Asked Questions about Germany's neighbours demand year-end halt to gas levy
1What is the main topic?
The article discusses the pressure on Germany from neighboring countries to end a gas levy by year-end amid political delays.
2Why is the gas levy controversial?
The levy is seen as an artificial price increase hindering efforts to move away from Russian gas.
3What are the concerns of Central European countries?
They are concerned about energy security and high prices due to the levy and political delays in Germany.
