Czechs get assurances German gas levy to be abolished, deputy minister says

PRAGUE (Reuters) – The Czech Republic has received assurances from Germany that it will abolish a gas transit fee this week or in early January, news agency CTK reported, citing a deputy industry minister.

Germany’s neighbours, also including Austria and Slovakia, want the fee waived as it pushes up prices as they seek to shift away from Russia gas.

“We were assured by Germany that the fee has already been abolished by the government and is awaiting approval in the German Bundestag, which should take place this week,” CTK cited Czech deputy industry minister Stepan Hofman as saying Monday evening on the sidelines of meetings in Brussels.

“If it doesn’t happen this week, then it will probably happen in January, with the effect being retroactive from January 1.”

Germany’s economy ministry did not immediately respond to a request for comment. A ministry official said last week a retroactive law that would restrict a gas storage levy so that it applies only to German customers was possible at start of next year.

Berlin introduced the fee to cover the high costs of replacing Russian gas after Moscow reduced deliveries in 2022.

German system operator Trading Hub Europe has said the tariff will rise by a fifth next year on the assumption it is restricted to German customers only.

The flow of gas across the Czech-German border has fallen in recent months as traders seek cheaper gas via the Slovakia transit, mostly from Russia.

In a joint European Union paper this month, Austria, the Czech Republic and Slovakia said the scheduled expiry of a Russian deal to supply gas to Europe via Ukraine at the end of the year had made it more urgent that the German levy is scrapped.

(Reporting by Jason Hovet, additional reporting by Friederike Heine; Editing by Kirsten Donovan)