Germany to Consider Bailouts For Energy Firms

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There are indications that Germany may amend its energy security law to allow the government to take stakes in struggling energy firms, or impose levies on consumers.

The amendments may likely be placed before the country’s Parliament any time from now, Reuters said yesterday, citing three competent sources.

According the report, these amendments would allow the German government to bail out energy firms or to impose a levy on consumers and thus pass on soaring energy costs and ease the burden on energy firms.

Gas providers and buyers in Germany have been struggling with surging prices of gas since Russian the product critical when it invaded Ukraine, and risked the ongoing sanctions from the European Union.

For example, energy giant Uniper, one of the largest customers of ’s Gazprom, said this week it had initiated talks with the German government on possible measures to stabilize its finances amid low Russian gas deliveries and soaring gas prices.

“Uniper entered into discussions with the German government on possible stabilization measures for which a number of instruments could be considered, such as guarantees and collateral, increasing the current not yet drawn KfW credit facility, and equity investments,” the company said in a statement.

The report stated further that weeks before that, Germany saved a former Gazprom unit it had expropriated in April with a multi-billion-euro loan to ensure the security of supply.

Gazprom Germania GmbH was the German unit of Gazprom until a few ago before the German government placed Gazprom Germania under the trusteeship of the German energy regulator to ensure the security of supply after invaded Ukraine.

Germany is looking to impose a levy on the gas bills for all consumers as it seeks to help ailing gas suppliers, who are struggling with surging prices for non-Russian gas after Moscow slashed deliveries, then news reported last week, citing a proposal of the German government it had seen.

The potential levy on gas bills could be voted in Parliament this week, industry sources told Reuters.


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