After cutting back on supplies
Habeck announces the second stage of the gas emergency plan
06/23/2022, 09:22 am
The consequences of the Russian war of aggression are pushing the German energy supply to its limits. In the event of a gas shortage, there is an emergency plan that regulates the distribution of resources at the highest level. Economics Minister Habeck is now proclaiming the second stage.
In view of the decline in gas deliveries from Russia, Federal Minister of Economics Robert Habeck will announce the second stage of the gas emergency plan, according to ntv information. For the time being, however, this will not mean for companies and consumers that energy suppliers can pass on the drastically increased purchase prices for natural gas directly to their customers.
The Federal Network Agency will not yet activate the corresponding price adjustment clause under the Energy Security Act. The regulatory authority will not yet determine the “considerable reduction in total gas import volumes” required for this. The Ministry of Economic Affairs did not want to comment on this for the time being. Habeck wants to appear before the press at 10 a.m. The focus should be on the topic of energy and security of supply. The ministry did not provide any further details.
The alert level is the second of three escalation levels of the gas emergency plan. The relevant regulation was first activated after the Russian attack on Ukraine. Habeck had declared the early warning level on March 30th. Unlike the early warning level, the alert level could have significant consequences for businesses and consumers if utilities were able to pass on their higher purchase prices directly to their customers.
No state intervention in the gas market yet
A new price adjustment clause was created for this in the Energy Security Act in May. But this is not automatic. It must first be formally activated by the Federal Network Agency. However, the declaration of the alarm level is also a prerequisite for the implementation of the federal government’s plans to bring more coal-fired power plants back on the grid in order to save natural gas in electricity production. The corresponding law is to pass the Federal Council on July 8th.
The declaration of the alert level is likely to be justified by the reduction in gas deliveries through the Baltic Sea pipeline Nord Stream 1. Since the gas flow was throttled last week, the gas market has been even more tense than before. The alert level does not yet bring state intervention in the gas market. Only with the emergency level as the last step of the escalation ladder would the Federal Network Agency allocate who would still get gas in a gas shortage situation. Private households are particularly protected and should be cared for for as long as possible. The industry would then have to adjust to cuts.