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German Gas Association Seeks Levy Cut, Loans to Fill Winter Storage

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Germany's gas storage industry association, Ines, has called for the removal of certain levies and charges and for the provision of government loans, to help fill storage capacity ahead of winter amid unfavorable market conditions.

"Current market conditions do not provide sufficient economic incentives for filling gas storage facilities," Ines said. "The price differences between injection and withdrawal are currently insufficient to cover the associated costs."

The group proposed abolishing the conversion levy and network charges at connection points, and suggested offering subsidized loans, to support market-based storage filling in the short term.

These measures could cut storage utilization costs by around 1.16 euros ($1.35) per megawatt-hour, according to Ines's statement.

"For these measures to be effective before the coming winter, rapid implementation is necessary," the association said.

Ines also sees the need to develop a viable economic framework to ensure sufficient storage capacity and maintain necessary facilities in the long term.

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