Market area conversion: what is it and why is it necessary?

Nowega operates and markets about 1,500 kilometres of high-pressure gas pipelines, mainly used for L-gas (lower-calorific gas). Due to the decreasing production of L-gas in Germany and the Netherlands, Nowega’s long-distance networks needs to gradually be converted to accommodate H-gas (high-calorific gas). Ensuring the security of supply over the long term is the primary objective.

As we gradually convert the network, commercial and household gas-consuming units need to be modified or converted in a step-by-step process. This applies to about five to six million units in Germany. At the same time, high-pressure gas pipelines and stations must be constructed or expanded.

The conversion will be made in close coordination with the Federal Network Agency in accordance with Article 19a of the German Energy Industry Act (Energiewirtschaftsgesetz, EnWG) and the German Network Development Plan (Netzentwicklungsplan). Nowega will provide every affected client with binding information about the conversion with at least 3 years and 2 months prior notice.

The costs incurred by this are distributed across all German gas supply networks by means of a standardised levy in accordance with Article 19a of the Energy Industry Act (Energiewirtschaftsgesetz) in connection with Article 10 of the Cooperation Agreement. The levies applied until today are listed in the following table: