Germany triggers gas alarm stage, accuses Russia of ‘economic attack’ – Reuters
Germany triggered the alarm stage of its emergency gas plan on Thursday in response to falling Russian supplies, but stopped short of allowing utilities to pass on soaring energy costs to customers.
Lower gas flows sparked warnings this week that Germany could fall into recession if Russian supplies halted altogether. Germany will provide a 15 billion euro credit line to fill gas storage and launch a gas auction model this summer to encourage industrial users to save gas.
The second alarm stage of a three-stage emergency plan allows utilities to immediately pass on high prices to industry and households if the supply squeeze and price gains persisted, pushing power companies deeper into the red.
Local utility association VKU asked the government to protect consumers with subsidies, saying that gas prices could triple.
Data released on Thursday showed Germany imported 22% less natural gas in the first four months of 2022 than in the same period in 2017, but the cost surged 170%.
In the second stage, the market is still able to function without state intervention, but Gazprom might drag out the process to make it harder to fill gas storage until winter.
The head of the International Energy Agency warned that Russia may cut off gas to Europe entirely to bolster its political leverage.
Several countries have outlined measures to withstand a supply squeeze and avert winter energy shortages and an inflation spike that could test Europe’s resolve to maintain sanctions on Russia.
Read more on this story at the following additional news sources:
- Germany triggers gas alarm stage, accuses Russia of ‘economic attack’ Reuters
- Germany declares gas crisis as Russia cuts supplies to Europe CNN
- Germany Looks at Potential Rationing of Natural Gas After Russia Cuts Supply The Wall Street Journal
- Germany faces gas supply ‘crisis,’ declares alarm level The Associated Press – en Español
- Germany triggers ‘alert level’ of emergency gas plan, sees high risk of long-term supply shortages CNBC
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