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ACER asks Germany to give up charging cross-border gas transactions

11 March 2024
Oil&Gas
energynomics

The Agency for the Cooperation of Energy Regulatory Authorities (ACER) has put new pressure on Germany for the tariffs charged by Berlin in the case of cross-border gas transactions, which, according to some countries, endanger the energy solidarity of the European Union (EU) and harm efforts aimed at reducing dependence on Russia, reports Reuters.

This tariff is a legacy of the energy crisis that Europe faced in 2022, after Moscow reduced gas supplies to Europe. In an attempt to recoup the billions of euros it spent to quickly fill its storage with non-Russian gas, Germany introduced a tax on cross-border gas transactions.

In a report published on Friday, ACER reiterated the concerns previously expressed by the Czech Republic, Austria, Slovakia and Hungary regarding the tax applied by Germany.

The application of costs to cross-border gas transactions could affect gas supplies, could lead to price increases in some countries and could make it difficult for countries to diversify their gas supply sources, the Agency assessed, according to Agerpres.

“Tariffs and taxes charged to recover the costs of implementing national storage measures should not be applied at border crossing points, in order to avoid negative effects on gas transactions”, ACER representatives emphasized.

The European Ministers of Energy discussed this issue at their meeting that took place on Monday in Brussels. Two European diplomats told Reuters that Germany had suggested it was working on a solution that would address concerns expressed by member states.

In this context, the European Commission has informed that it is discussing the tax in question with Germany. A European diplomat has suggested that Brussels could launch infringement proceedings against Berlin if its concerns about the transit tax are not resolved.

ACER pointed out that the concerns of Germany’s neighboring countries intensified after the authorities in Berlin decided to triple the tariff, from 0.59 euros for one Megawatt/hour in October 2022, to 1.86 euros/MWh in January 2024.

In addition, despite the concerns, Berlin would extend the period of application of the tariff for two years, until the end of 2024. In this context, Italy intends to follow Germany’s example with its own additional tariff.

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