Germany is currently in an “extremely tense situation” in terms of energy supplies, Economy Minister Robert Habeck said on Friday, adding that Europe’s largest economy was still at risk of running out of gas this winter.
“We are still in this emergency situation. If we don’t save, if households don’t reduce their consumption, we always risk not having enough gas in winter,” Habeck told local radio station Deutschlandfunk, as quoted by Reuters.
The minister’s assessment of the energy supply situation came a day after Germany announced plans for a multibillion-euro ‘defensive shield’ to protect households and businesses from soaring coronavirus outbreaks. energy prices, and a day after the German regulator warned once again that energy and gas conservation is necessary if Germany is to avoid gas shortages this winter.
On Thursday, the German government announced it would scrap earlier plans for a gas tax for consumers and instead introduce a gas price cap to curb soaring energy bills, German Chancellor Olaf Scholz establishing a “defensive shield” of 196 billion dollars (200 billion euros). to protect businesses and consumers from the impact of soaring energy prices.
Under the new plan, Germany will introduce an emergency curb on gas and electricity prices and will also scrap a previously planned gas tax for consumers to prevent any further price increases. The gas tax, which was due to take effect on Saturday and remain in place until April 2024, was intended to help utilities cover the cost of replacing Russian supply.
Also on Thursday, Germany’s federal network agency, Bundesnetzagentur, said gas consumption had increased too much last week to higher levels than in previous years, and without considerable gas conservation, including from households, the country will struggle to avoid gas shortages this winter. .
“Without significant savings, also in the private sector, it will be difficult to avoid a winter gas shortage,” said agency president Klaus Müller. said Thursday.
By Tsvetana Paraskova for Oilprice.com
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