Policy analysis of the German gas storage levy at cross-border points: Implications for flows, prices, and regional market integration
Milan Hudák et al.
What the paper says
This paper examines the German Gas Storage Levy (Gasspeicherumlage, GSU), enacted in response to the 2022 energy crisis that followed Russia’s invasion of Ukraine. By requiring Trading Hub Europe (THE) to inject substantial gas volumes into storage at soaring prices and then recoup costs via a levy, Germany effectively secured sufficient storage levels to avert a winter supply emergency. However, the application of the levy to cross-border flows provoked legal and political tensions with neighbouring member states, who argued that the measure undermined EU market integration and energy solidarity principles. Through legislative analysis, market data breakdown, and econometric testing, this paper shows how the GSU reshaped cross-border gas flows, created structural price breaks above certain levy thresholds, and ultimately forced a rollback of the charge on exports. The study concludes that while the GSU was successful in securing Germany’s gas supply, its unintended regional consequences highlight the need for a coordinated EU-level approach to crisis responses and cost recovery mechanisms.
3 citations
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.32 × 0.4 = 0.13 |
| M · momentum | 0.57 × 0.15 = 0.09 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.