Federal Minister of Economics Katherina Reiche (CDU) wants to oblige gas traders to actually use booked gas storage capacities. In doing so, she wants to increase security of supply. So far, retailers have been able to let this capacity go unused.
Reiche's plan is outlined in a key points paper from Reiche's house, which the federal cabinet approved on Wednesday. It is available to the Handelsblatt. Reiche submitted the paper at the same time as the bill to introduce a gas reserve for crisis prevention, which the cabinet also approved on Wednesday.
The paper states that gas suppliers' responsibility for supplying their protected customers should be heightened. “Sanction-proof supplier obligations should be made possible,” says the key points paper. Protected customers include private households, educational institutions, hospitals, nursing homes as well as fire departments and police.
The paper also states that care will be taken to ensure that no unnecessary additional bureaucracy is created. Suppliers should therefore be given the opportunity to demonstrate their precautionary measures through various measures. In addition to storage, booked capacities for liquefied natural gas (LNG) are also mentioned.
Capacity bookings have often proven to be deceptive in the past. In the past few weeks, Reiche had repeatedly pointed out that the storage facilities were well booked. But that is no guarantee that the bookings will actually be used. Figuratively speaking: someone puts a towel on the lounger at the pool, but doesn't use the lounger.
In the industry, approval for filling obligations predominates. A few weeks ago, the federally owned energy company Uniper said that such an obligation could be a sensible building block and, if designed correctly, could help fill the storage facilities more strongly at the start of winter. “Other European countries are already using such models,” said a spokesman.
The key issues paper also addresses the concerns of industry: “Provision for critical industries should also be addressed,” it says. Critical industry refers in particular to sectors where an interruption in gas supply would have an impact on supply chains that are of critical importance to society.
In addition, the gas supply to power plants should be protected separately. “It is being examined whether an opportunity should be created to make operators of gas power plants more responsible for precautionary measures,” says the paper.
The Greens generally welcome Reich's plans: "Gas reserves and the idea of a supplier obligation are right," said Michael Kellner, energy policy spokesman for the Green parliamentary group, to the Handelsblatt. However, he restricts: “These rules come too late for this winter with historically empty storage facilities.”
The accompanying letter to the law introducing a gas reserve for crisis prevention also states that “possibilities for targeted relief for particularly energy-intensive companies” are being examined and that the European Commission will be approached about this. No further details are given.
The ministry is responding to growing concerns in industries with high gas demand. Given the high gas price level, companies have to reduce their production because their products are no longer competitive. In other regions of the world, gas prices are significantly lower.
What the “targeted relief” might look like is still unclear at the moment. Various instruments are being discussed. The affected sectors are reminded of the gas price cap of the crisis year 2022, which applied until the end of 2023.
The gas price cap, also known as the gas price brake, imposed upper limits on the price of gas. The federal government reimbursed the amounts that exceeded the upper limits. Different upper limits applied to private households and businesses than to energy-intensive industries.
