Germany to enter phase 2 of ‘alarm stage’ of emergency gas plan: report


Germany to enter phase 2 of gas emergency plan: report

Germany will enter phase 2 of its three-stage emergency gas plan on Thursday, but a clause that would allow utilities to pass on soaring energy costs to customers will not yet be triggered, sources close to said folder.

The measure would be the latest escalation in a clash between Europe and Moscow that has revealed the bloc’s dependence on Russian gas supplies and the difficulty of finding alternatives for several years.

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The “alarm phase” of phase 2, scheduled when the government perceives a high risk of a long-term shortage of gas supply, theoretically allows utilities to pass on high prices to industry and households and to help reduce demand.

One source, speaking on condition of anonymity, said the source of alarm would be raised and two sources said the clause allowing utilities to pass on costs would not.

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The economy ministry declined to make a statement ahead of a news conference scheduled for 0800 GMT.

Faced with the decrease in gas flows from Russia, the first European economy has been in phase 1 of its emergency plan since the end of March, which includes stricter control of daily flows and an emphasis on filling installations. gas storage.

A move to phase 2 has been the subject of speculation since Russian supplier Gazprom cut flows through the Nord Stream 1 pipeline to just 40% capacity last week, blaming equipment that cannot be sent in reason for the penalties.

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In the second stage, the market is still able to absorb the missing volume without the need for state intervention that would occur in the final emergency stage.

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