Central Europe urges action against German gas tariff

Four central European nations are urging Brussels to address a gas tariff imposed by Germany, claiming it undermines their energy security, Reuters reported on Wednesday.

The levy was implemented during the 2022 energy crisis when Moscow reduced gas supplies to Europe. It adds an extra charge to gas withdrawn from Germany’s storage, aiming to recover costs incurred from purchasing non-Russian gas at high prices to avert shortages.

Austria, the Czech Republic, Hungary, and Slovakia argue that the tariff hinders their efforts to reduce reliance on Russian gas by increasing the cost of purchasing non-Russian fuel via Germany. The quartet calls on the European Commission to take concrete action to resolve the issue.

Legal action against Germany over the tariff, deemed a violation of EU single market rules, is reportedly being prepared by the Commission, though no lawsuit has been initiated yet.

With the planned cessation of Russian gas transit via Ukraine by year-end, the tariff is expected to significantly diminish the security of the entire Central and Eastern Europe regions.

Austria and Hungary, both heavily reliant on Russian gas, face challenges in diversifying their energy sources.

The EU energy ministers and the Commission are slated to discuss the German levy at a meeting in Brussels. Germany’s economy ministry has asserted that the levy is non-discriminatory and has benefited other EU nations during the energy crisis by swiftly replenishing its gas storage, the largest in the bloc.

The Commission has raised concerns about the levy’s legality under EU single market regulations and is engaging in discussions with the German government.