GErmany collapses the energy market by moving Russia toand reducing Europe's natural gas supplyI warned that there is a risk of causing it. Of theLehman Brothersthat trigger the financial crisis.
There is a risk of ripple effects for local utilities and their customers, including consumers and businesses, as energy suppliers are forced to supply large amounts of electricity at high prices and accumulate losses. Economic Minister Robert Havek said on Thursday that the country's gas risk levels are in the second highest "warning" stage.
"If this minus becomes too big to be carried, there is a danger that the entire market will collapse at some point," Habeck said at a press conference in Berlin. "So the Lehman effect on energy systems."
Europe's largest economy faces an unprecedented outlook for power shortages for businesses and consumers. Russian President Vladimir Puttin has gradually reduced supply in retaliation for the apparent sanctions imposed on the invasion of UkraineStands after a major gas link to Germany plummeted last week. Off is escalated and dangerous.
Read more:Germany cannot rely on Russia's energy. I don't know what to do instead
Increased vigilance, increased market scrutiny, and some coal-fired power plants scheduled to restart. With current gas inflows, Germany needs 116 days to reach its target to meet 90% of its storage capacity. This means it will take until mid-October. This is usually the time when households start consuming more. Heating gas.
During the alert phase, governments are also given the option of enacting legislation that allows energy companies to pass on increased costs to homes and businesses. Habeck said he has postponed price adjustments for now to see how the market reacts. Chemical giant BASFAG announced later Thursday that production could be cut due to soaring gas prices.
"It will be a rocky road that we have to travel as a country," he said. "If you haven't felt it yet, you're in a gas crisis." It rose by 7.7% to the highest price. Contracts have increased by more than 50% since state-owned gas giant Gazprom PJSCreduced the flow of its major Nord Stream pipelineby about 60%.
Germanyrelies on Russia for more than one-third of its gas supply and the first "early warning" phase at the end of March when the Kremlin demanded payment in the ruble Was enacted. He urged Germany to prepare for a potential disruption in supply. The third and highest "emergency" level includes state control over distribution.
The crisis has spread far beyond Germany, affecting 12 European Union member states and 10 issuing early warnings under gas security regulations, European Union climate officials said. France Timermans said in a speech to the European Parliament.
"The risk of complete gas destruction is more realistic than ever," he said. "This is all part of theRussian strategyto undermine our unity."
Read more:The illusion of peace in Europe has been irreparably shattered
Deputy Prime Minister Habeck said: Russia's move to reduce gas supply through the Nord Stream pipeline makes it nearly impossible to secure sufficient gas reserves in winter without additional measures. He said he was concerned that Nord Stream links might not return to normal capacity after the 10-day maintenance period began on July 11. Advance. Reserves are currently about 58% full, and energy companies are trying to reach the government's mandated 90% capacity target by November.
According to figures from the German network regulator known as BNetzA, Wednesday's daily sufficiency rate has dropped by about half to the lowest level since early June. At that rate, it will take more than 100 days to reach the target, so the country will successfully enter the traditional heating season.
"Gas supply is still available in the short term, but companies in all sectors are very concerned," saidDIHK, president of the industry lobby. Peter Adrian said in an email. statement.
"Given these dark clouds are gathering together, we must now work together to do everything to save winter gas." He added.
BNetzA implements distribution if the government triggers an emergency level. Bonn-based agencies say supply is likely to be cut at leisure facilities, protecting critical public services such as consumers and hospitals.
Gas is an important part of Germany's energy mix and is more difficult to replace than Russian coal and oil, which will be phased out by the end of the year. Fuel is important for home heating and industrial processes in the fields of chemistry, pharmaceuticals and metals.
Germany has taken steps to secure supply, including taking control of its local Gazprom subsidiary. This subsidiary has been renamed Securing Energy for Europe GmbH. The country is also building infrastructure for importing liquefied natural gas from the United States and other suppliers, but they are not ready until later this year.
To strengthen the market in the short term, the government has made available an additional credit line by state-owned lender KfW to guarantee gas injection at the storage location.
An auction model will be launched this summer to allow industrial gas consumers to save and store fuel. According to BnetzA's documentation, as seen by Bloomberg, the plan envisions major gas suppliers or industrial users posting offers on TradingHub Europe. In the event of a bottleneck, TradingHub Europe will take the cheapest offer.
"Suppressing gas supply is Putin's economic attack on us," Habeck said. "Obviously, it is Putin's strategy to fuel anxiety, push prices up and divide us as a society. We will counter this."
— Chad Thomas,Zoe Schneeweiss,Andrew Reierson,EwaKrukowskaandAngela Cullen
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