Yesterday, after being forced to restrict heating, hot water, and street lighting owing to an energy crisis, Germany was nicknamed the “sick man of Europe.”
Even as Vladimir Putin’s soldiers continue their assault on Ukraine, the nation is still incredibly reliant on Russian gas supplies, and there are worries that the taps may be shut off.
The Nord Stream 1 pipeline that transports Russian gas is already being cut off.
Due to delays in servicing a turbine, Russia’s gas monopoly, Gazprom, has reduced volumes sent through the pipe to 40% of capacity, according to its statement.
There are concerns about whether Nord Stream 1 will resume on schedule after being shut down for ten days starting on Monday for routine maintenance.
As the war raises wholesale prices, energy costs are rising across Europe.
However, the crisis is particularly severe in Germany. Vonovia, the largest residential landlord in the nation with 490,000 apartments under management, is limiting central heating to 17C from 11 p.m. to 6 a.m.
According to the Financial Times, a housing association in Saxony has been limiting tenants’ access to hot water to ten hours per day spread across three predetermined times.
A neighborhood near Frankfurt will turn off the hot water in gyms and schools starting in September, while a swimming pool complex in Dusseldorf has been shut down and street lighting in Cologne will be dimmed to 70% of its full intensity starting at 11 p.m.
Last month, Germany advanced to stage two of its three-tier emergency gas plan, taking a step toward the start of full-scale fuel rationing as the country braces for shortages.
In an emergency, it has been stated that households would take precedence over industry, while urging people and businesses to reduce their consumption.
Berlin already provides fuel and public transportation subsidies to aid consumers in bearing the burden of rising costs.
While much recent commentary has concentrated on Britain’s economic concerns, Julian Jessop, an economist fellow at the Institute of Economic Affairs, claimed that Germany was “the real sick man of Europe.”
They are effectively talking about rationing, Mr. Jessop continued.
Even if they continue to subsidize prices, if the energy isn’t there, it won’t be there in the end. It is obviously a significant issue for them.
Germany declared last month that it would burn more coal in order to reduce its reliance on Russian gas.
Petrol dealers may be taking advantage of drivers in rural parts of Britain, the competition watchdog warned Wednesday.
According to a survey by the Competition and Markets Authority (CMA), gasoline costs for drivers in rural locations are typically 1p to 2p higher per litre, and in certain areas, they are “significantly more.”
It said that because there are typically fewer supermarket forecourts in rural locations, there is less rivalry, which could lead to exaggerated profit margins.
Business Secretary Kwasi Kwarteng requested the CMA report, which stated that “weak competition…may lead to pricing discrepancies that are unconnected to costs.”