Federal regulatory body probes gas industry price rigging - consumers face potential increased expenses
The Federal Network Agency in Germany is actively investigating a potential market manipulation case in the domestic gas market, focusing on conversion costs between mid-May and mid-July 2025. The investigation centers around €60 million in disputed costs, which could potentially lead to higher energy bills for consumers.
The market operator Trading Hub Europe GmbH detected "unusual nomination behavior" by some balancing group managers, which may have artificially increased conversion costs. This concerns the conversion of low calorific L-gas to high calorific H-gas to ensure pipeline and appliance safety across regions.
If the investigation confirms manipulation leading to higher costs, the regulator may impose or raise a conversion levy, currently at zero, which could potentially lead to higher energy bills for consumers. This comes amid an already complex energy market and despite recent governmental efforts to reduce other levies on consumer energy costs.
The Federal Network Agency spokesperson confirmed the possibility of a conversion surcharge upon request from the Berliner Zeitung. This surcharge could potentially be imposed again in the future due to the high amount at stake.
The potential market manipulation case involves the use of balancing energy for the conversion of L-gas to H-gas in the Trading Hub Europe (THE) market area. Large volumes of balancing energy were used for these conversions, leading to costs of around €60 million by mid-July.
As the investigation continues, it is crucial to monitor the situation closely to understand the potential impact on consumer energy prices in the short term. The Federal Network Agency's efforts to ensure fairness and transparency in the gas market are commendable and serve the best interests of all stakeholders.
[1] Berliner Zeitung. (2025). Federal Network Agency Investigates Gas Market Manipulation. Retrieved from www.berliner-zeitung.de/wirtschaft [2] Reuters. (2025). Germany's Federal Network Agency Probes Gas Market Manipulation. Retrieved from www.reuters.com/business [3] Spiegel Online. (2025). Gas Market Manipulation Investigation by Federal Network Agency. Retrieved from www.spiegel.de/wirtschaft
