Germany passes waiver of gas storage fee outside the country from Jan 1, 2025

(Reuters) - Germany's lower house of parliament on Friday passed a change to energy law entailing a waiver from Jan. 1, 2025, of a domestic market gas storage fee on border points and virtual trading hubs, thus freeing foreign consumers of a costly price element.

The law change, driven by non-compatibility of the levy with European energy solidarity and aimed at helping especially south-western neighbours diversify gas procurement away from reliance on Russian gas, received a parliamentary majority.

It can enter into force from January 1, 2025, when the levy, applied to domestic gas buyers by system operator Trading Hub Europe (THE), will see a hike by 20% to 2.99 euros a megawatt hour (MWh).

Austria, the Czech Republic and Slovakia had feared the collapse of Germany's coalition government in November risked delaying the law change, which they had successfully pressed for earlier this year.

Germany agreed in May to scrap the tariff for foreigners but needed to implement the relevant law change.

With the move passed, foreign buyers can avoid additional costs at a time that cold weather and low renewables output have already pushed European gas prices to 1-year highs.

THE makes the charge as part of a 2022 government mandate to fill and empty parts of Germany's big gas cavern infrastructure, to help create energy security after the invasion of Ukraine led to Russia's westwards gas exports being curbed.

THE's remit includes routinely revising the gas charge every six months.

Germany has 23 billion cubic metres of underground gas storage capacity, making it a big player internationally and the leading storage nation in the EU.

(Writing by Vera Eckert, editing by Friederike Heine)