Germany raises gas alert level

June 24, 2022 1:05 a.m.

Germany raised the ‘alert level’ on Thursday as part of its contingency plan to secure gas supplies in response to Russian supply shortages, but did not allow facilities to charge customers higher energy prices.
Falling gas flows from Russia raised fears this week that Germany could stagnate if Russian supplies were completely cut off.
German Economy Minister Robert Habeck said in a statement: “We hope to avoid gas rationing, but it is not excluded…Gas is now a scarce commodity in Germany…By Therefore, we are forced to reduce gas consumption, since it is already summer.”
The “alert level”, the second stage of the three-phase contingency plan, means authorities see a high risk of a long-term supply shortage. The plan includes a provision for establishments to immediately charge the industrial sector and households higher prices.
Habeck said Germany has not yet reached that stage, but this clause can be implemented if supplies are scarce and prices continue to rise.
It was due to move to the second stage when the Russian company “Gazprom” reduced gas flows through the pipeline (Nord Stream 1) to just 40% of its capacity last week.
Russia denies that the supply cut was intentional. The Kremlin said Thursday that Russia “scrupulously fulfills all its obligations” to Europe.

Source: Reuters

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