Increased heating charges: Residents to face higher utility bills for heat once more
In Germany, an ongoing investigation is scrutinising suspected market manipulation in the conversion of low-calorific gas (L-gas) to high-calorific gas (H-gas). The Federal Network Agency is examining unusual nomination behaviours by balancing group managers, which took place between mid-May and mid-July 2025. This alleged manipulation could have led to additional costs of around 60 million euros related to fuel use for the gas conversion process.
The investigation centres around Trading Hub Europe GmbH, the market operator responsible for ensuring safe and reliable gas supply. The company is under suspicion for using balancing energy in a manner that might constitute market manipulation during the conversion process.
This alleged manipulation comes at a time when Germany's energy transition is facing systemic pressures. The decline in renewable energy output and the increasing complexity of energy markets pose significant challenges. Regulatory probes like this have the potential to distort EU energy markets under frameworks such as REMIT, potentially increasing costs and market volatility.
The direct consequence for consumers could be increased energy bills due to additional levies financing the gas conversion activities. However, experts have stated that the switch to H-gas, which is more efficient and sourced from countries like Russia and Norway, should not significantly affect gas bills.
The switch from L-gas to H-gas is scheduled to occur by 2029, with fewer L-gas supplies available in the coming years. All customers will be switched to H-gas by this date. It is important to note that L-gas is primarily sourced from the Netherlands and is cheaper but has a lower energy value compared to H-gas.
The investigation is raising concerns among citizens, particularly as the aim was to relieve them from the gas storage surcharge. However, the suspected manipulations in the conversion process could result in additional costs for consumers. Other authorities are also involved in the investigation, as the responsible parties come from different countries.
The exact amount of additional costs from the suspected manipulations is not yet known. The investigation is ongoing, and updates will be provided as more information becomes available.
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