Due to a decrease in Russian supply, Germany is getting closer to having to implement gas rationing.
Germany’s economics ministry claimed that the nation has activated the “alert” stage of its emergency gas plan to cope with shortages.
The EU and Russia are engaged in a confrontation over Russia’s invasion of Ukraine.
In reaction to EU sanctions, German Economy Minister Robert Habeck claimed Russia was using gas “as a weapon.”
“Delusions won’t fool us. Putin has attacked our economy by limiting our gas access.” Mr. Habeck said Germans should cut down.
According to Mr. Habeck, gas rationing in German industry is “of course, I can’t rule that out,” but he added that he hoped it would never be necessary.
The second step of Germany’s three-part emergency plan has now been activated, which gets activated when there is interruption or a strong demand for gas.
There will be a gas auction to encourage large corporations to reduce their use and the government will pay €15 billion (£13 billion) in loans to fill storage facilities.
As the strategy moves forward to the second stage.
Suppliers and network operators will be under more pressure to mitigate disruptions by identifying other sources of gas, for example.
A move to allow utilities to pass on rising costs to consumers under stage two is theoretically feasible, but the government has not yet taken this step.
At least once each day, gas network operators and power grid operators are required to report to the Economy Ministry on the status of their supplies.
The first phase of the emergency plan is execution.
Third-stage intervention by the state occurs when the market.
Interruption of gas supply
Is unable to deal with a severe interruption in supply, resulting in rationing of commodities.
The industry would first lose its gas supply.
But important institutions like hospitals would still be able to get their hands on it in the third stage.
According to EU climate policy leader Frans Timmermans, Russia’s gas supply curbs have already reached 12 EU members.
Due to technical difficulties, Russia reduced Nord Stream 1 pipeline flows to 40% of their previous capacity last week.
This affects many nations, including Germany.
Repairs will take place from July 11 until July 21 on Nord Stream 1.
International Energy Agency chief Fatih Birol has issued a dire warning to Europe.
Saying the continent must begin preparing for a complete cutoff of Russian gas supply.
As a result of these countries’ failure to comply with a new payment system.
Russia has already shut off gas supplies to Poland, Bulgaria, the Netherlands, Denmark, and Finland.
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