With energy suppliers piling up losses by being forced to cover volumes at high prices, there’s a danger of a spillover effect for local utilities and their customers, including consumers and businesses, Economy Minister Robert Habeck said Thursday after raising the country’s gas risk level to the second-highest “alarm” phase.
The heightened alert tightens monitoring of the market, and some coal-fired power plants will be reactivated. At the current rate of gas inflows, Germany would need 116 days to reach its target to fill 90% of storage capacity, which would mean it would take until mid-October to do so — a time of year that households would usually start consuming more gas for heating.
Germany’s gas reckoning comes after the country for decades built an ever bigger reliance on Russian energy, despite repeated warnings from the US and other allies. Under former Chancellor Angela Merkel, Germany even built a second gas pipeline link with Russia that was on the cusp of opening when Vladimir Putin invaded Ukraine.
Germany has been rushing to fill up gas-storage facilities, but has made only modest headway. Reserves are currently around 58% full, and energy companies are trying to reach a government-mandated target of 90% capacity by November. BNetzA would implement rationing if the government triggers the emergency level. The Bonn-based agency has said leisure venues would likely see supply cuts, while consumers and critical public services such as hospitals would be protected.
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