Kirsten Ludowig is deputy editor-in-chief of the Handelsblatt.
(Photo: Max Brunert for Handelsblatt)
Germany in July 2022: It’s summer and the sun is shining. Holidays are already in the first federal states. After two years of the corona pandemic with all its deprivations, the longing for relaxation and recreation is great. Who wants to think about the dark season?
Economics Minister Robert Habeck no matter how much he urges people to save gas and take quick showers, no matter how much the consumer advice center prophesies the “rude awakening” in winter, no matter how much the industry warns of production stops: Germany is in displacement mode to some extent. Everyone is wondering whether the gas from Russia will soon be gone altogether.
But the gloomy thoughts of what this could mean for living rooms, factories and jobs in Germany in the coming months push many away. That’s human.
But no longer hold out. The consequences of the lack of gas misery are getting closer and are spreading further. The case of (of) Uniper has shown how fragile the energy supply in Germany is – and how great the risk that next winter will not only be expensive, but also cold.
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Should it actually happen that there is not enough gas for consumers and companies in winter, the Federal Network Agency would allocate the gas that has become scarce. The economy would have to do without first. Private households are particularly protected in the event of bottlenecks, but there could also be certain restrictions for them.
>> Read also: Cold withdrawal of Russian gas: Germany is threatened with an emergency winter
Uniper, the largest gas trader in Germany and one of the largest in Europe, needs help from the state worth billions. If he doesn’t get it, there is a risk of collapse – of large parts of the system that supplies Germany with gas. In this respect, there is no alternative for the federal government to get involved.
But the bitter truth is that Uniper carelessly committed itself to Russia. A good half of the gas imports, on which hundreds of municipal utilities, suppliers and companies in the country depend, come from Russia. A classic cluster risk.
Not only Uniper has one, but all of Germany. During Angela Merkel’s 16-year term in office, the Russian share of Germany’s gas supply rose from around 40 to 55 percent. Despite the annexation of Crimea, despite Vladimir Putin’s imperialist behavior, Germany has become even more dependent since 2015. Price seemed more important than security of supply.
Link state aid for Uniper to conditions
Countermeasures are now being taken at record speed. The Bundestag decided late Thursday evening to facilitate state aid for ailing energy companies like Uniper. If necessary, a levy system can also be set up so that gas price increases can be passed on to customers more evenly.
And at Uniper, too, the federal government must urge the company to procure as much (liquefied) gas as possible from different sources and countries as quickly as possible – keyword diversification – and to become more involved in the energy transition.
It’s not about politicians getting involved in operational business. The state is seldom the better entrepreneur. But he can and must attach conditions to his aid. There might even be a small profit at some point. With the Corona Crisis Fund, the federal government earned around 104 million euros in 2021.
But first we have to make sure that we somehow get through the winter.
More: EU in gas distress: The strategies of the states