Germany has just declared a stage two emergency gas plan amid mounting fears from the reduction of Russian gas flows that would make this winter very crucial due to supply shortage to warn the country.
The alarming stage two of its three-stage emergency plan shows that Berlin is now seeing a high risk of long-term gas supply shortages and allowing utilities to pass on high prices to industry and households and thereby help to lower demand.
According to the Regulation (EU) of the European Parliament and of the Council, the second crisis level is triggered when “a disruption of gas supply or exceptionally high gas demand which results in significant deterioration of the gas supply situation occurs but the market is still able to manage that disruption or demand without the need to resort to non-market-based measures.”
In this second stage, the market is still able to cushion missing volume without the need for intervention from the government, which would step in on the final stage.
Dutch TTF Gas Futures are up 4.80% at €133.27, up from the closing price of €127.17 yesterday. The price increased 55.78% this month from €85.55.