German Regulator Demands Higher Gas Stocks, Warns of Rising Energy Prices
Economy / Finance

German Regulator Demands Higher Gas Stocks, Warns of Rising Energy Prices

Klaus Müller, president of the Federal Network Agency (Bundesnetzagentur), is urging gas traders to store more gas in preparation for winter, citing low filling levels in German storage facilities. At the same time, he is issuing a warning about expected increases in utility bills for both companies and industry.

Speaking to the news portal T-Online, Müller stated that enough gas is available overall. He added that he cannot imagine a gas trader trying to tell customers during the winter that there is insufficient gas because the trader failed to make adequate preparations. He expects gas suppliers to fulfill their responsibilities.

The Network Agency had been promised these necessary measures during the spring. Müller stressed that the responsibility rests with the gas traders and they should not be exempted from accountability. While acknowledging that the Iranian conflict has significantly amplified the challenges, he made it clear that this should not be conflated with a failure to meet operational duties. He affirmed that there is sufficient gas available on world markets, noting that such purchases may become more expensive due to the geopolitical crisis.

By contrast, Müller refuted the industry’s claim that the Federal Network Agency complicates storage economics through high bureaucratic burdens, levies, and grid fees. He pointed out that the Federal Government and Parliament recently abolished the gas storage surcharge, which has relieved the gas sector of billions. He further maintained that he sees no increase in bureaucracy; that is not the root problem.

Nonetheless, the head of the Federal Network Agency anticipates rising prices for both private households and industry in the medium term. “We are seeing a lot of uncertainty due to the closure of the Strait of Hormuz,” Müller explained. “This means gas consumers and renters should prepare for higher bills. While currently the prices are far below those of 2022, this is unavoidable.” He concluded by stating that currently, there are no signs of the situation on the gas market stabilizing permanently.