Germany announces plans to spread gas price risk

Frankfurt, July 1 (BNA): Germany has set up a facility to levy a tax on all gas consumers to help suppliers grappling with rising import gas prices, according to a draft law amendment seen by Reuters.

In late May, Germany passed a law to enable the country to guarantee energy supplies in the event of market failure due to the Russo-Ukrainian War and cuts to Russian gas exports on which it relies heavily.

The additional clause to be considered by parliament on July 8 is intended to help German distributors who have had to deal with sharply higher prices.

The government has not allowed sellers to pass prices through the supply chain, citing concerns about inflation and a cost-of-living crisis for consumers.

FKN