Austrian energy regulator E-Control will "take all necessary steps" at an EU level if it looks like a law to abolish Germany's storage levy on gas exiting the country will not be passed in time, it told Argus today.
E-Control will take action in close co-operation with the Austrian ministry, the European Commission and energy regulators' group Acer before the end of December if needed, the regulator's executive director, Alfons Haber, told Argus.
The regulator is "very much concerned that the announced abolishment of the German gas storage levy at cross-border exit points is at risk now", Haber said. But E-Control remains optimistic that the German government will fulfil its promise to abolish the gas storage levy from 1 January 2025.
The collapse of the German government earlier this week has made it uncertain whether parliament can pass the required bill in time.
The German storage levy — set at €2.50/MWh at present — was introduced in 2022 to cover losses incurred by German market area manager THE to fill gas storage sites ahead of the winter. But the levy made the German import route uneconomical for its southern and eastern neighbours, which last year asked the EU to intervene. Germany agreed to scrap the levy on cross-border interconnection points in May, saying at the time that the change would have to be ratified by an act of parliament.
The levy "severely impacts cross-border gas flows in Europe and has strong negative effects on the CEE region", Haber told Argus. Particularly in light of the risk that Russian gas transit through Ukraine would end after 1 January, German imports would become more significant for Austria, in which case the levy would "hurt" even more, Austrian market area manager AGGM board member Bernhard Painz said.
Scope for levy law to be passed in time
The incumbent government hopes to pass some bills "that cannot be delayed" before the end of this year, the chancellor said on 6 November.
Economy and climate minister Robert Habeck on 7 November said he expects the interests of the government and the "democratic opposition" to align on energy security. But Habeck does not expect "a great deal of helpfulness", and "it remains to be seen" whether some decisions can be made together with the opposition on a case-by-case basis, he said.
Major opposition party CDU today voiced a desire for an earlier election date in German parliament, asking Scholz to schedule a vote of no confidence as early as next week. This would drastically reduce the chance of any bill being passed before the end of this year. The chancellor today said he was open to a "sober" discussion about the election date. Scholz expressed hope that the "democratic factions of parliament" could agree on which laws can still be passed this year. This common understanding could determine the "right moment" to trigger a vote of no confidence, he said. Only the chancellor can call a vote of no confidence under the German constitution. The opposition can do so only if they elect a new chancellor at the same time.
Bill is not controversial among democratic parties
Democratic parties showed no opposition to the bill to change how the storage levy is charged during its first reading in parliament, suggesting it could be passed as one of the bipartisan projects if it is high enough on the agenda.
The bill, introduced to parliament in August, was framed as a way to align the storage levy with EU rules. The government asked for it to be expedited. The upper house of parliament, the Bundesrat, passed the law on to the lower house without comments on the proposed changes.
During the first reading of the bill in the lower house, no democratic party raised any concerns about the law. CDU instead framed it as an attempt to fix what the government had done wrong in 2022. Then-governing parties the Greens, SPD and FDP were in favour of the law in light of its positive effects on EU solidarity.
BMWK was not immediately available for comment on whether the storage levy was on the list of laws that the government would try to push through before the end of this year.
