Federal Minister of Economics Robert Habeck activated the early warning stage of the so-called gas emergency plan due to an imminent deterioration in the supply situation.
“There are currently no supply bottlenecks,” said the Green politician on Wednesday in Berlin. “Nevertheless, we have to increase the precautionary measures in order to be prepared in the event of an escalation by Russia.” This first of three crisis levels does not yet provide for any state supply restrictions.
According to the emergency plan, there are three crisis levels. In an emergency, household customers would be particularly protected.
“There are currently no supply bottlenecks,” explained Habeck. “Nevertheless, we have to increase the precautionary measures in order to be prepared in the event of an escalation by Russia.” A crisis team came together when the early warning level was declared. “The crisis team analyzes and evaluates the supply situation so that – if necessary – further measures can be taken to increase the security of supply. The federal government is doing everything it can to continue to ensure security of supply in Germany.”
According to the ministry, the overall supply of all German gas consumers is currently still guaranteed. “Nevertheless, from now on every gas consumer – from business to private households – is also required to reduce their consumption as much as possible.”
According to the ministry, the early warning level means that a crisis team will meet at the Ministry of Economic Affairs, consisting of authorities and energy suppliers. The gas suppliers and the operators of the gas pipelines are obliged to regularly assess the situation for the federal government. The state has not yet intervened. Gas traders and suppliers, transmission and distribution system operators take “market-based” measures to maintain the gas supply: According to the ministry, these include using flexibilities on the procurement side, using gas storage facilities and optimizing load flows.
Russia adamant about paying in rubles
Background to the declaration of the early warning level: Russia remains adamant in its demand that Russian gas supplies to Western Europe be paid for in rubles. By Thursday (March 31), by order of President Vladimir Putin, the modalities would be worked out so that the system would be “simple, understandable, transparent and implementable” for European and international gas purchasers, Kremlin spokesman Dmitry Peskov said on Tuesday, according to the Interfax agency. “No one will deliver gas for free, and it can only be paid for in rubles,” he emphasized once again.
Putin announced last week that Russia would only deliver gas to Germany and other “unfriendly countries” if they were paid in rubles. This would support the troubled Russian currency. However, the group of G7 economic powerhouses, including Germany, as well as the European Union as a whole, oppose payments in rubles for gas.
Habeck confirmed on Wednesday that if Russia only accepts payment for gas imports in rubles, this would constitute a breach of private supply contracts. In order to be prepared for possible supply restrictions or failures, the ministry had therefore declared the early warning stage. The current situation in the gas network is being closely monitored and evaluated.
According to the emergency plan, there are three crisis levels. The early warning level means that there are “concrete, serious and reliable indications” that an event can occur which will probably lead to a significant deterioration in the gas supply situation – and will probably lead to the triggering of the alarm or emergency level.
At the emergency level, there would be a “significant disruption” to the gas supply. The state would have to intervene, in particular to ensure the gas supply to “protected customers” – these are private households, but also hospitals, fire brigades and the police.
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