Government approves shutdown of gas networks – consumers lose right to gas connection

The German government has enabled the decommissioning of gas networks through an amendment to the Energy Industry Act. Network operators will now be permitted to take their lines out of service if they no longer see a climate-friendly use for them. This is part of Germany’s energy transition plan to achieve climate neutrality by 2045. The biggest risk factor for households lies in the conversion deadlines. Under certain conditions, network operators are allowed to disconnect consumers from the gas network after just five years. Consumer advocates are therefore warning of potential financial losses for owners of new gas heating systems, while the energy industry is primarily praising the new legal clarity. (t-online: 27.03.26)


Decommissioning of Gas Networks to Secure Transformation by 2045

With the Cabinet decision, the German Federal Government is creating new rules for energy suppliers, municipalities, and network operators. These companies must already be adapting their infrastructure to a future with less natural gas. The draft legislation mentions biomethane, hydrogen, or synthetic gases as alternative uses. If such a prospect is lacking, the decommissioning of individual network sections should be legally permissible.

The German government allows operators to shut down their gas networks – consumers sometimes only have 5 years to replace or convert their heating systems.
The German government allows operators to shut down their gas networks – consumers sometimes only have 5 years to replace or convert their heating systems.

The energy sector explicitly supports this approach because it is intended to simplify planning. The industry association BDEW speaks of greater legal certainty for the conversion and continued use of existing pipelines. Kerstin Andreae, CEO of BDEW, says: “It is good that the amendment to the Energy Industry Act now introduces a set of instruments that will legally secure and clarify the further development and continued use of gas networks, the potential decommissioning of network sections, and the establishment of a hydrogen market.” Environmental associations also see this as progress, because the decline in gas consumption is foreseeable in many places.

Consumer advocates warn of short deadlines and high costs

However, consumer advocates criticize the new regulations because households will lose certain rights. Previously, there was a general right to a gas connection; this protection will no longer apply. Network operators are generally required to inform their customers ten years before decommissioning. However, this period can be reduced to five years if a district heating network is available by then to which the affected buildings can be connected.

Consumer advocates see this as a serious problem, because many gas heating systems run considerably longer than expected. Such systems typically have a lifespan of 20 to 30 years, and their installation often costs many thousands of euros. Florian Munder from the Federation of German Consumer Organizations says: “When consumers have a new heating system installed, they can rightfully expect to be able to use it until the end of its usual lifespan.” He therefore demands appropriate compensation if households have to replace their systems prematurely. Network operators should also inform their customers about alternatives to gas connections and available subsidies, while the German Association of Energy and Water Industries (BDEW) criticizes the fact that energy suppliers should not be left to shoulder these responsibilities alone.


Conflicting Signals Increase Uncertainty

Additional uncertainty arises from the planned Building Modernization Act, which is intended to replace the current Heating Act by summer. According to these plans, the installation of new gas heating systems will generally remain possible. However, this makes it difficult for network operators to predict when gas consumption in individual areas will decrease sufficiently to allow for the decommissioning of pipelines for economic or climate policy reasons.

The Munich Environmental Institute calls the amendment an “important step” toward climate neutrality. At the same time, energy expert Till Irmisch warns of conflicting signals to municipalities, public utilities, and households. Network operators need to determine when less gas is needed in which street, while policymakers are not categorically ruling out new gas heating systems. This complicates the planning for decommissioning and increases the risk of new conflicts over deadlines, responsibilities, and the costs of the conversion.

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