Germany and European Union race to address energy crisis

Europe: Germany will step up, leading to energy firms at risk of being crushed by increasing gas prices, it mentioned in the statement on Tuesday, as Europe readied proposals to help households and industry cope with an energy crisis.

On Wednesday, the European Commission will make the announcements on the targets to cut down the electricity consumption as well as a revenue cap for non-gas fuelled plants. Moreover, the energy ministers will hold an emergency meeting on September 30 to have a discussion upon them.

The securities of the European Union watchdog is considering measures to help energy firms struggling to meet rocketing collateral demands. Firms were noticed the rise in the cost after Russia cut the supplies of gas to Europe to counter Western sanctions following Moscow’s full-scale military operation against war-torn Ukraine.

Along with this, the crisis is weighing heavily on Europe’s economy, even before winter when industrial users could face rationing if gas reserves prove inadequate. Industry sentiment in the bloc’s economic powerhouse, Germany, Europe, has fallen.

The German Chancellor Olaf Scholz mentioned in the statement on Tuesday, “Of course, we knew, and we know, that our solidarity with Ukraine will have consequences.”

He requested Germans to brace for a tough winter as its energy supply shifts from Russian gas.

Utilities are in line for further governmental assistance due to pressure.

According to the German Finance Ministry, public financing for energy companies utilising facilities created to provide relief during the COVID-19 outbreak should be increased. On Wednesday, the German cabinet is anticipated to adopt a draught law. The potential value of the loan guarantees is 67 billion euros ($68 billion).

The newest energy company to request government assistance is VNG, one of Germany’s largest buyers of Russian natural gas.

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