Gas “is a rare commodity for Germany at the moment (…) It’s not a game”. With this statement, the Minister of Economy and Climate Protection Robert Habeck announced that the second phase of the emergency plan for natural gas is being activated, due to the reduced supplies from Russia and the significant increase of prices. “This is an economic attack by Putin. Gas and energy are being used as weapons against Germany,” he said, adding that “the situation is tense but security of supply remains guaranteed.”
Mr Habeck warned of a “shock” to the gas market and new price increases, stressing that “even if the supply and storage of gas continues, the situation is serious and winter is coming”. He clarified, however, that at the moment the provision that utility companies can pass on the increased costs to customers with an existing contract will not be automatically activated. “The country is heading towards a difficult situation. It will be a difficult road. Even if you do not feel it yet, we are in a gas crisis. Gas is a rare commodity at the moment (…) It is not a game. Prices are already high “We have to prepare for more increases,” which will affect industrial production and burden many consumers, the minister continued.
“We must not be deluded: reducing gas supplies is an economic attack by (Vladimir) Putin on us. It is his strategy to fuel uncertainty, raise prices and divide us as a society. That is what we are dealing with. “The current situation is not the fault of Germany’s internal energy market, but only of Moscow,” he said, referring to Germany’s misguided policy of over-reliance on Russian energy and the lack of alternatives to renewables. energy. “This is now taking revenge on us,” he said.
The decision to activate the second phase was taken due to the reduction of gas supply from Russia to the German-Russian pipeline Nord Stream 1 in the Baltic Sea. Last week’s downturn is already causing a tense situation in the gas market, Robert Hubek explained, adding that it is considered a predictable and new burden, as maintenance work on the pipeline has been scheduled for ten days from July 11th.
At the moment, the top priority is to fill the storage tanks, the minister said, adding that the gas storage facilities are 60% more full than they were in the same period last year. However, if deliveries through Nord Stream 1 remain below the 40% level, he estimated that it will be difficult to achieve the desired fullness of 90% in storage without additional measures by December.
The German gas contingency plan consists of three phases: In the first phase of the early warning, which Germany has already activated on 30 March, no action is taken other than to intensively monitor supply and market developments. In the second stage of the alarm, which is activated now, due to the reduced deliveries and the price spike, the possibility of the utility companies to pass on to the customer the increased costs in order to reduce the demand and to prevent the shortage in the future. . Activation of this stage is a precondition for measures, such as the operation of more coal-fired power plants, in order to save gas. The relevant legislation is expected to be passed by the Bundestag on July 8. In the third phase of the emergency, the Federal Grid Service may impose restrictions on gas consumption, even a ticket. Priority is given to critical infrastructure, followed by households and finally industry.
Today, the Minister of Economy called on the consumers to contribute to the saving of natural gas already from the summer, “by regulating the heating and proceeding to its adjustment, before the winter comes”. The amount of energy and money that can be saved in this way is very important, he stressed.
In the same vein, Finance Minister Christian Lindner warned of problems with gas supplies for the next 3-5 years and problems with the supply chain due to high inflation. “My concern is that in a few weeks or months we could have a very worrying situation,” Lindner told ZDF. German stations still in operation “.
The ruling coalition is expected to discuss measures against rising prices, especially for energy, next Wednesday.
Source: Capital
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