Insight
Germany’s gas levy development
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
As Russian gas flows have been systematically reduced, German buyers holding Russian contracts have had no choice but to purchase from the open market to ensure commitments to consumers are met. However, this has come at an enormous price as spot gas prices remain at record highs, placing many German buyers into financial difficulty. In response, the German government has stepped in with significant emergency funding to alleviate the cost of additional gas procurement. The German government must ascertain who will ultimately burden this emergency support and how. In the latest development, Germany has announced a gas levy that aims to cover the additional cost of purchasing spot market gas volumes. The gas levy will come into effect on 1 October 2022. Read this insight for the following: • What are the mechanisms of the gas levy, and who will pay? • Who is eligible for compensation from the gas levy? • What is the implication of the gas levy for the markets and domestic consumers?
Table of contents
- Introduction
- Development of the gas levy
- Levy fees
- Support for gas consumers
- Implication for the markets
- Summary and discussion
Tables and charts
This report includes the following images and tables:
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German gas levy summaryImpact of the gas levy on the average domestic consumer in GermanyRussian Contracts to Germany prior to 1 MayWood Mackenzie’s Q3 2022 short-term TTF forward curve
What's included
This report contains:
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