Germany’s energy-intensive producers fear €11bn cost from natgas levy

Stefan Baumgarten

11-Aug-2022

LONDON (ICIS)–Germany’s chemical and other energy-intensive industrial producers could face more than €11bn/year in additional costs from the levy on natural gas consumption (“Gasumlage”) that will take effect in October, officials said on Thursday.

The €11bn translates into an additional burden of €13,000 for each job in the chemicals, steel, gas, paper, building materials and metals industries.

“Energy-intensive industries are very concerned about their future in Germany,” chemical producers’ trade group VCI and other groups said in a joint statement.

“Producers depend on affordable energy for their international competitiveness,” they said.

They also warned of an additional levy, a levy on gas storage (“Gasspeicherumlage”), also due to come into effect in October.

“These multiple burdens pose a massive threat to energy-intensive companies in Germany,” said Jorg Rothermel, who heads VCI’s energy, climate protection and raw materials unit.

Industry and private consumers were affected by the current acute energy price crisis, he said.

“It is therefore important to relieve groups that are particularly affected, such as energy-intensive companies, through the federal budget, without additional burdens for private consumers,” he added.

Gas consumers will have to pay the levy starting on 1 October 2022 until 1 April 2024, when it will expire.

The levy will allow the government to raise funds to cover 90% of the additional costs gas importing power firms have incurred because of the shortfall in Russian gas supply.

The supply shortfall has forced gas importers to buy replacement volumes on the market, at much higher prices, jeopardising their solvency.

The exact amount of the levy has yet to be announced. Government officials previously indicated €0.015-0.05/kilowatt hour.

Front page picture: The Chemiepark in Marl, in Germany’s North Rhine-Westphalia state
Source: Hans Blossey/imageBROKER/Shutterstock

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