Essay by Eric Worrall
h/t JoNova; Germany’s renewable policy inspired energy insecurity has reached crisis levels, with Germany’s Vice Chancellor warning of “Lehman like” economic contagion if energy prices rise any further.
Germany says its energy crisis may trigger Lehman-like contagion as the country moves a step toward to natural-gas rationing
Huileng Tan
Jun 24, 2022, 3:47 PM
- Germany’s economy minister warns of a “market collapse” if natural-gas prices continue to soar.
- Germany has triggered the second stage of its three-stage emergency gas plan on supply fears.
- That’s after Russia —citing a techincal reason — slowed piped natural-gas supplies to Germany.
Germany warned the country’s energy crisis may trigger a “Lehman effect” across the utility sector as it moved one step closer to rationing natural gas.
Germany — Europe’s largest economy — moved into the second of its three-stage emergency gas plan on Thursday after Russia slowed supplies to the country, exacerbating concerns over an energy crunch. These supply fears have already driven European natural gas futures up by 85% year-to-date.
Under the second stage of Germany’s emergency gas plan, utility companies can pass on price increases to customers. The government is holding back on triggering the clause for now. But Habeck said they could kick in if the supply crunch and price increases persist, as energy suppliers that buy power on the wholesale market are running up losses and many could ultimately fail as a result.
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Russian state gas giant Gazprom has cut natural-gas supplies via the Nord Stream pipeline to Germany — which also goes to the rest of Europe — by more than half since last week, citing an equipment hold-up in Canada as a result of sanctions over the Ukraine war.
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“We mustn’t delude ourselves: cutting gas supplies is an economic attack on us by Putin,” said Habeck in a statement on Wednesday. “It is clearly Putin’s strategy to create insecurity, drive up prices and divide us as a society. We will defend ourselves against this.”
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Read more: https://www.businessinsider.com/germany-says-energy-crisis-may-trigger-lehman-like-contagion-2022-6
What was the name of the former US President, who warned Germany their green policy driven dependence on Russian gas would lead to disaster? I’m sure readers can remind me.
More information about the growing energy chaos in Germany:
19.7% of German people suffering energy poverty
ResearchGate / University of Florence – Energiewende caused a near doubling of energy prices
Germany cutting the renewable energy surcharge to help the poor – but not eliminating it
German wood theft on the rise, as people steal wood to stay warm
Germany could ration gas this winter
Imagine if instead of wasting well over a decade inflicting useless green energy failure on their people, German politicians had spent the last decade facilitating the development of their own domestic energy resources – cheap and reliable power from their abundant coal, and more nuclear reactors, which only need to be refuelled every other year, to insulate their economy from energy price shocks like the German people are currently enduring.
via Watts Up With That?
June 26, 2022
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