LAST UPDATE 12:46
Germany today issued a warning that it could lead to a gas emergency.
He stressed that the measure is designed to prepare for a possible cessation of gas supplies from Russia.
Economy Minister Robert Habeck said in a statement that supplies were secured at the time and that Germany was closely monitoring flows with market managers.
“Nevertheless, we must increase the precautionary measures in order to be prepared for an escalation on the part of Russia.
“With the announcement of the early warning, a crisis team has been convened,” Habeck said in a statement.
The announcement – the clearest sign so far that the European Union is preparing for a supply cut after unprecedented sanctions in response to Russia’s invasion of Ukraine – comes as Moscow plans to introduce a new gas payment mechanism in rubles.
This demand, which was rejected by the G7 countries, including Germany, sparked concerns about a market disruption.
Under the current contingency plan, early warning is the first of three stages and does not yet involve government intervention in the gas.
But Economy Secretary Robert Habeck called on consumers and businesses to cut consumption, saying “every kilowatt hour counts”.
He said the team, which includes members of his ministry, the German network regulator and network administrators, would monitor the case closely, “so that – if necessary – further steps can be taken to increase security.” of supply ”.
He told a news conference that gas supplies were being protected at the moment and that Germany was closely monitoring supply flows with market participants.
“Nevertheless, we need to increase precautionary measures in order to be prepared for an escalation on the part of Russia. By declaring the level of early warning, a crisis group has been convened,” Habeck said.
Russia accounts for 55% of German gas imports in 2021. Although the figure fell to 40% in the first quarter of 2022, Habeck stressed that Germany would not achieve full independence from Russian supplies before mid-2024.
What is Germany’s plan?
The Berlin Emergency Plan for gas provides for three levels of alert.
The first level, activated today by the German government, applies when there are indications that there may be an emergency in gas supplies. The second level means an alarm when a supply disruption or extremely high demand affects the normal balance, but there can be correction without intervention.
The third level is a state of emergency and is activated when market measures cannot address shortages. At this level, the network regulator, the Bundesnetzagentur, is called upon to decide how the country’s existing oil reserves will be distributed.
Source: Capital
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