Germany to hit consumers with new energy levy – media

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.