(Bloomberg) — Germany delayed the implementation of a disputed natural gas levy, raising doubts about whether one of the government’s key efforts to stabilize its energy sector will ever take effect.
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Consumers won’t have to pay the levy for the months of October and November until at least October 31, according to a draft of the law proposal, which was seen by Bloomberg. The plan initially called for consumers to pay in advance by October 1. There are “still open questions” regarding the levy, the draft says.
“Things are complex,” said German Economy Minister Robert Habeck, who floated the idea of a gas levy in August. “We are working them through very carefully with regard to subsidy regulations and constitutional issues,” Habeck said after a meeting of G7 trade ministers in Neuhardenberg on Thursday.
Germany’s energy markets have been in disarray since Russia slashed gas deliveries following the imposition of sanctions. In an effort to stave off collapse, Habeck floated the idea of a levy that would distribute the rising costs of gas imports evenly among consumers and pass them on to companies in need. The proposal has been mired in controversy ever since.
Habeck had promised to present a new draft after facing criticism from his own government that the levy would benefit companies not affected by soaring prices. He still aims to introduce the levy on October 1.
The economy minister, who is also Vice Chancellor, refused to comment on the latest draft, which could also affect potential government plans to nationalize companies like Uniper and VNG. Both companies have suffered huge losses as a result of rising gas prices.
The CDU-led conservative opposition called on Habeck to abandon the gas levy.
“Habeck is apparently unable to present the promised fixes”, CDU lawmaker Andreas Jung told Bloomberg. Instead of a levy, the government should directly support those gas importers that are in financial trouble, Jung said.
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