A chilly autumn spell arrived in Germany this week, but despite falling temperatures, people are being urged to keep their gas heating off or turned down low. The country鈥檚 energy regulator has warned that above average gas use for the time of year means that Germany may be forced to introduce rationing in the face of squeezed supplies from Russia.
(BNetzA) showed gas聽 consumption of 483 gigawatt hours (GWh) for the week beginning 19 September, above the average of 422 GWh for the same time of year in 2018 to 2021.
鈥淎lthough the week was significantly colder than the same week in previous years, the savings required to avoid a gas shortage must be achieved regardless of temperatures,鈥� the agency said. Its head, Klaus Mueller, warned that 鈥渨ithout significant reductions, including in private households, it will be difficult to avoid a gas shortage this winter鈥�. A reduction of at least 20 per cent in use would be needed to avoid shortages, according to the agency.
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Gas stores in Germany have been filling up and are now at 91.50 per cent of capacity, but the agency said it 鈥渆xplicitly emphasises the importance of using gas economically鈥�.
The apparent attacks on 26 September on the Nord Stream 1 and 2 pipelines, which pump Russian gas to Europe, haven鈥檛 affected the situation, said the agency. 鈥淣o gas has been delivered through Nord Stream 1 since the beginning of September anyway, and Nord Stream 2 has never been put into operation,鈥� said BNetzA.
The squeeze on Russian gas has hit Germany particularly hard, as it relied on Russia for 65 per cent of its imports of this fuel before the war in Ukraine. The German government triggered the first 鈥渆arly warning鈥� phase of its three-stage emergency plan shortly after Russia鈥檚 invasion in February.
In mid-June, following a 60 per cent reduction in gas flows from Russia, the country鈥檚 energy ministry launched the second 鈥渁lert鈥� stage of the plan. This allows utilities to pass on high prices to customers in a bid to prevent long-term supply shortages and allows the use of more coal-fired electricity plants, despite the resulting increase in carbon emissions. That said, a consumer price cap has since followed.
If the third 鈥渆mergency鈥� stage were to be enacted, the state could directly intervene in the gas market to secure supply to 鈥減rotected customers鈥�. Industry and regulators are still working out exactly what would happen at this stage and which customers could be prioritised under a system of gas rationing.
Meanwhile, in an effort to shield consumers and companies from rising gas prices, the German government announced on 29 September that it would take on 鈧�200 billion in fresh debt to implement a gas price cap. Under the scheme, the state would set a limit for consumer gas prices and pay the difference between that cap and what gas importers pay on the world market.
France and the UK have also capped energy prices to consumers, paid for by government borrowing, and this is an approach that could be rolled out more widely, as European Union energy ministers meeting in Brussels today will discuss potentially introducing an EU-wide price cap on Russian gas.
鈥淔irst, we must act at the point where gas enters into our market,鈥� said EU energy commissioner Kadri Simson ahead of the Energy Council meeting. 鈥淲e are negotiating with our reliable suppliers of pipeline gas. If this doesn鈥檛 bring results, then a price cap is possible.鈥�
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