The German gas market was opened up to competition by an amendment to the energy law in 1998 (New Energy Industry Act of 24 April 1998). Additional regulations for market liberalization were contained in a 2003 amendment to the energy law (First Law on the New Energy Industry Act of 20 May 2003). The Second Law on the New Energy Industry Act of 7 July 2005 transposed EU Directive 2003/55/EC of 26 June 2003 into German law. Under this directive, all European energy consumers, both households and industrial customers, must be able to benefit from a fully liberalized market by no later than 1 July 2007.

Directive of the European Parliament and of the Council

The 1998 energy law amendment opened up the electricity and gas supply markets to competition. Energy suppliers had previously had a monopoly in their respective supply areas. The liberalisation of the gas market Europe is therefore a revolutionary step. It aims to create more free competition on the gas market and ultimately a more efficient European internal market.

The energy law amendment of 20 May 2003 contained regulations on market liberalisation, focusing particularly on the gas market. When the 2005 amendment came into force on 13 July 2005, there was a transition from negotiated to regulated network access based on the 2003 internal market directives for electricity and gas. All these laws are national transpositions of a European framework directive, under which Europe's electricity and gas market must be fully liberalised and accessible to all energy consumers by 1 July 2007.

• The gas market is opened up to competition.
• The purchase and sale of gas is divided up into two areas of activity: transmission and distribution.
• There are a number of different suppliers on the market. They use the same network.
• End users and distributors conclude a contract with the supplier of their choice.
• The gas price is made up of the price of the product, the price of transmission - including distribution over the network - and various taxes and charges.

• Product price: As an industrial customer, this is the only price that you negotiate when concluding a contract with your gas supplier. The price will depend on consumption volumes, your consumer profile, the services provided by the supplier and the guarantees given. Transmission costs will also form part of the price, unless you yourself conclude a network access contract with the system operator.
• Transmission costs: Price-setting and invoicing are the responsibility of the transmission system operator, but the costs are checked and approved by the Federal Network Agency or regional regulatory bodies. These costs arise from the system operator's investments in building, maintaining and operating a safe and reliable infrastructure.