21 November 2025
Germany will remove its gas storage surcharge from January 2026, Trading Hub Europe (THE) announced, following new legislation approved earlier this year. The surcharge - currently 2.89 euros per megawatt hour - was introduced after Russia’s 2022 invasion of Ukraine to offset the higher cost of replacing Russian pipeline gas with alternatives such as LNG.
Germany’s parliament has ruled that remaining surcharge costs, up to 3.4 billion euros by the end of 2025, will be covered by the Climate and Transformation Fund. The economy ministry has since acknowledged that some state-driven measures have inflated consumer energy prices and is shifting toward more market-based mechanisms to secure supply.
Germany’s storage capacity stands at 22.6 bcm, around 26% of its annual gas use.
The gas storage surcharge was one of several emergency mechanisms Germany introduced after 2022 to secure winter supply following the disruption of Russian pipeline gas. With storage now consistently well-filled and the immediate crisis phase past, absorbing the residual costs into the Climate and Transformation Fund allows the government to lower the direct energy bill for households and industrial consumers while continuing to underwrite security-of-supply investments.
The decision also reflects a broader recalibration of German energy policy: shifting from crisis-era interventionist measures toward more market-based mechanisms as the country balances energy security, industrial competitiveness and decarbonisation targets.
With storage capacity of 22.6 billion cubic metres - around a quarter of annual gas demand - Germany's storage architecture remains among the most substantial in Europe, providing continued flexibility even as long-term policy prioritises renewables and electrification of heat and industry.
For European industrials - particularly energy-intensive sectors in chemicals, steel, glass and manufacturing - gas price volatility remains a first-order strategic issue.
Cognitud's climate action, energy transition and market intelligence teams work with corporates to model exposure across changing energy market designs, structure long-term hedging and PPA strategies, and integrate energy-transition planning into wider decarbonisation pathways aligned with CSRD, ISSB and internal net-zero commitments.
Turning short-term market shifts into a coherent decarbonisation strategy is where the real long-term commercial advantage lies.
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• 𝘌𝘶𝘳𝘰𝘱𝘦’𝘴 𝘭𝘢𝘳𝘨𝘦𝘴𝘵 𝘪𝘯𝘥𝘶𝘴𝘵𝘳𝘪𝘢𝘭 𝘤𝘢𝘳𝘣𝘰𝘯 𝘤𝘢𝘱𝘵𝘶𝘳𝘦 𝘧𝘢𝘤𝘪𝘭𝘪𝘵𝘺 𝘩𝘢𝘴 𝘣𝘦𝘦𝘯 𝘪𝘯𝘢𝘶𝘨𝘶𝘳𝘢𝘵𝘦𝘥 𝘢𝘵 𝘠𝘢𝘳𝘢’𝘴 𝘢𝘮𝘮𝘰𝘯𝘪𝘢 𝘢𝘯𝘥 𝘧𝘦𝘳𝘵𝘪𝘭𝘪𝘴𝘦𝘳 𝘱𝘭𝘢𝘯𝘵 𝘪𝘯 𝘚𝘭𝘶𝘪𝘴𝘬𝘪𝘭, 𝘵𝘩𝘦 𝘕𝘦𝘵𝘩𝘦𝘳𝘭𝘢𝘯𝘥𝘴. • 𝘛𝘩𝘦 𝘧𝘢𝘤𝘪𝘭𝘪𝘵𝘺 𝘤𝘢𝘯 𝘤𝘢𝘱𝘵𝘶𝘳𝘦 𝘢𝘯𝘥 𝘭𝘪𝘲𝘶𝘦𝘧𝘺 𝘶𝘱 𝘵𝘰 800,000 𝘵𝘰𝘯…