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German Regulators Investigate L-to-H Gas Costs and Plan Conversion Surcharge

Trading Hub Europe will charge 0.018 cents per kilowatt-hour from October to recoup about €60 million in conversion expenses identified by the Bundesnetzagentur.

Overview

  • The Bundesnetzagentur has opened formal proceedings against several balance-responsible parties over suspected manipulation in the L-to-H gas conversion process.
  • Trading Hub Europe reported that unusual nomination patterns between mid-May and mid-July led to roughly €60 million in rule-energy and conversion costs.
  • Regulators have notified local authorities and the EU energy agency ACER as they investigate whether the conversion spike reflected manipulation or commercial strategy.
  • Starting October 1, Trading Hub Europe will impose a 0.018-cent per kilowatt-hour conversion levy that is likely to be passed on by energy suppliers to consumers.
  • Germany’s scheduled transition of 4.3 million households from low-calorific to high-calorific gas by 2029 remains on track but faces potential additional levies if conversion costs persist.