German Lawmakers Pave the Way To Rescue Critical Energy Providers and Gas Supplies.
German lawmakers approved measures on Thursday that would allow the government to throw lifelines to companies struggling with record high gas prices and cuts in supply from Russia.
The law passed in the House of Representatives is part of a wider package aimed at helping Germany, facing the shortages associated with Russia’s invasion of Ukraine, keep its natural gas supply safe. Last month, Russia reduced the amount of gas supplied to Germany through its main pipeline, the Nord Stream 1 pipeline, by 60%.
The pipeline, which runs along the Baltic floor and connects the Russian gas fields with the northern coast of Germany, will be offline for 10 days of regular maintenance from Monday. Energy experts and politicians have taken Gazprom offline at the end of its maintenance period to retaliate against the economic sanctions imposed by Europe to punish Moscow for its invasion of Ukraine by Russia’s energy giant Gazprom. I’m afraid I might keep it.
Uniper, the electricity producer and Germany’s largest importer of Russian natural gas, is likely to be the first company to be bailed out under the new law after seeking help from the government last month. Based in Düsseldorf, the company is forced to buy gas at significantly higher prices in order to fulfill its long-standing contracts with about 100 municipalities nationwide.
A newly passed law, which is expected to receive final approval from the House of Councilors before Congress begins its summer vacation, will allow utilities to reopen coal-fired power plants that have been or are scheduled to be closed. can do. The Netherlands and Austria have taken similar steps.
The law also allows suppliers to give consumers price increases if authorities determine that “a significant reduction in total gas imports into Germany is imminent.” Politicians have traditionally sought to protect consumers in the hope of avoiding public protests.
“Germany’s social peace has been challenged and emphasized,” said Robert Habeck, the country’s energy minister, Thursday.
