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Rising gas and electricity prices: an embargo would be a "huge fiasco" for the economy

2022-04-09T15:15:29.596Z


Rising gas and electricity prices: an embargo would be a "huge fiasco" for the economy Created: 04/09/2022, 16:59 By: Yannick Hanke Gas and electricity prices have risen sharply as a result of the Ukraine war. A gas embargo would increase this effect. That's why Volker Müller, Managing Director of the Lower Saxony Entrepreneurs' Association (UVN), warns of a "giant fiasco". (kreiszeitung.de ass


Rising gas and electricity prices: an embargo would be a "huge fiasco" for the economy

Created: 04/09/2022, 16:59

By: Yannick Hanke

Gas and electricity prices have risen sharply as a result of the Ukraine war.

A gas embargo would increase this effect.

That's why Volker Müller, Managing Director of the Lower Saxony Entrepreneurs' Association (UVN), warns of a "giant fiasco".

(kreiszeitung.de assembly) © Holger Hollemann/dpa/Ying Tang/imago

As a result of the Ukraine war, gas and electricity prices have risen enormously.

EWE prepares for all eventualities.

Meanwhile, a gas embargo is being questioned.

Hanover/Oldenburg – The Ukraine war waged by Russian President Vladimir Putin is also having an economic impact.

Because while Russia's President Putin continues to wage war in Ukraine, the price of gas and electricity in this country are rising to levels that were not considered possible.

The same also applies to fuel for diesel and petrol, as well as heating costs, for which a record price was recently due.

That is why the federal government is feverishly looking for alternatives to Russian gas, oil and coal.

The energy supplier EWE is already preparing for all scenarios.

This is reported by kreiszeitung.de.

Gas price and electricity price: Deliveries from Russia should be stopped - but at what price?

With regard to the question of an immediate stop to gas deliveries from Russia, EWE explicitly refers to the responsibility of politicians.

The energy supplier based in Oldenburg is also aware of its own task as an “operator of critical infrastructure”.

It is about "preparing as best as possible for all currently conceivable scenarios," said EWE CEO Stefan Dohler to the dpa in the course of the rising gas and electricity prices.

At the same time, Lower Saxony would support the federal government's political decisions to turn away from dependency on Russia.

"The sanctions imposed in conjunction with the EU and NATO" endorses Dohler.

But one must also be aware of the consequences if there is an immediate stop to the supply of Russian gas.

Gas price and electricity price: EWE fears massive restrictions on the gas supply - LNG terminals as a possible alternative

This would lead to massive restrictions in the gas supply.

In dialogue with the decision-makers, including Energy and Economics Minister Robert Habeck (Greens), EWE would make it clear that a functioning energy supply is systemically important.

Against the background of rising gas and electricity prices, which the government parties are counteracting with the 2022 relief package, terminals for liquefied natural gas (LNG) also play a major role.

However, it is still unclear what proportion of the total gas consumption in Germany these LNG terminals could have in the future.

Recently, there was talk that the LNG terminals could replace up to “40 percent of Russian natural gas deliveries”.

Electricity price and gas price: Germany must secure the natural gas bridge by 2045 - but "alternative import capacities" are missing

It is also still unclear which LNG projects would ultimately be implemented on German coasts in order to become less dependent on Russian gas in the long term and to keep the electricity price and gas price at a constant level.

Concrete plans for the LNG terminals are currently underway in Wilhelmshaven, Stade and Brunsbüttel.

Both Federal Chancellor Olaf Scholz and Lower Saxony's Prime Minister Stephan Weil (both SPD) had campaigned for the implementation of the projects.

However, nothing is set in stone yet.

What is clear, however, is that we need more alternative import capacities to secure the natural gas bridge by 2045.

EWE CEO Stefan Dohler to the dpa

In fact, Germany is pursuing the goal of being CO₂-neutral by 2045.

In order to achieve this, natural gas applications should be used as a bridging technology until then.

With a view to a supply stop of Russian gas and the associated consequences for the local economy, the business associations of Lower Saxony (UVN) are also concerned.

Gas embargo as a reaction to Putin's war in Ukraine would be a "huge fiasco" for the economy

“We would notice the consequences of a gas embargo directly, both in terms of prices and our supply.

It hits everyone," says managing director Volker Müller to the "Neue Presse".

In this context he even speaks of a "giant fiasco".

And since the globalized economy is so intertwined, it's not even possible to say which industry would be most likely to be affected.

According to UVN CEO Volker Müller, a gas embargo would hit Lower Saxony the most.

After all, there are many small and medium-sized companies in the northern federal state "that are largely dependent on these gas prices and cannot react".

Alternatives to Russian natural gas are needed - but also more honesty in the discussion about coal and nuclear power

That is why it is now more a matter of strengthening possible alternatives.

As an example, Müller cites saving energy, for example when renovating buildings.

But it is also about honesty in the discussion about coal, fracking gas and nuclear power.

What kind of signal is that, please, when we ask and beg our neighbors to supply us with gas while we ourselves shut down nuclear and coal-fired power plants as soon as possible?

Volker Müller, general manager of the business associations of Lower Saxony (UVN), to the "Neue Presse"

Ultimately, it would not be about reversing the energy transition.

It's just about talking about necessities.

And finally to act.

The traffic light coalition does this in the form of the energy price flat rate, the tank discount, but also through the subsidy for recipients of Hartz IV, the 9-euro ticket for bus and train in the form of a monthly ticket for public transport or the children's bonus, where the requirement of 100 came up to 150 euros.

Because rising electricity and energy prices have long been the reality for tenants and owners, who will still have to deal with the new tax return for property tax 2022 this year.

(with dpa material) * kreiszeitung.de is an offer from IPPEN.MEDIA.

Source: merkur

All news articles on 2022-04-09

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