Germany: Who benefits from the gas tax?

The additional burden on natural gas consumers may also benefit energy companies that are not at risk of bankruptcy. That is why the government will review it.

The additional fee for natural gas, which will be borne by consumers in Germany from October 1 with the aim of supporting mainly the energy companies-importers of natural gas, is causing confusion, friction, and legal problems before it really starts to be implemented.

In the meantime, there is intense criticism from members of the opposition, social organizations and consumer associations for opaque – still at least – criteria as to exactly which energy companies are entitled to submit a request to benefit from state aid through the new fee.

The German Minister of Economy and Energy, Robert Hambeck – to whose competence these issues fall – stated that he is willing to review the criteria for granting this important state aid, especially the conditions that foresee the risk of bankruptcy of a company for its inclusion in a state aid regime from the “heavy tax” that German consumers will have to pay.

Review to avoid an unequal distribution of burdens

The issue was also raised at the government briefing in Berlin, with Chancellor’s representative Steffen Hebstreit confirming that Chancellor Olaf Soltz also considers the review of the conditions under which energy operators can make use of the aid “justified”. He even described the legal process of verifying the real beneficiaries as “difficult”, however supporting the new fee as a necessary measure “to pursue a specific purpose”.

Also according to the co-president of the Social Democrats, Saskia Esken, it is not possible for companies that are not currently facing a “survival issue” to be subject to the state support regime at the expense of others who are really in need but mainly at the expense of consumers who will soon see their gas bills to soar.

The point, in other words, is that the new additional burden on consumers does not lead to an unequal distribution of burdens, with energy companies that do not need help effectively going the other way, creating surplus profits.

Waiting for a wave of appeals?

In any case, to the entire political and economic debate about the new natural gas tax, legal tensions are now being added based on the German Constitution, but also on European Law.

Thus, legal experts estimate that the new fee, which essentially skyrockets the bills of consumers, may burden them disproportionately in relation to the benefits obtained by energy companies, judging on the basis of the principle of proportionality.

Dimitra Kyranoudis, Berlin

Source: Deutsche Welle