While Russia is busy maintaining its Nord Stream 1 gas pipeline, Europe fears whether Putin will continue to supply at all. Wolfgang Urbantschitsch, board member of E-Control, explained on Monday that Russia is already benefiting from the current supply freeze – the shortage would push prices even further.
If deliveries from Russia via Nord Stream 1 are actually completely stopped, action must be taken in Europe as soon as possible, according to Urbantschitsch in the ORF “ZiB 2”. Should this emergency arise, demand would still be covered before the summer, but alternative sources would be needed as soon as possible in view of the cold seasons.
Apart from that, however, it must be taken into account that in the near future less gas could flow than expected. According to Urbantschitsch, this is especially relevant for filling the gas storages in the country, because without Russian gas the minimum storage required by the EU of 80 percent is not feasible. At the moment, the memory is only 48 percent full.
Large storage facilities a “strategic advantage”
In the event of a complete cessation of the supply, it must also be clarified how the quantities already stored can be consulted. After all, the gas storage facilities are owned by private companies, so it is not entirely clear to what extent this gas is accessible. But it is a strategic advantage that there are so many storage facilities in Austria.
Next price avalanche probably this year
In any case, gas prices will continue to rise due to the already existing shortage of delivery quantities, explains the boss of E-Control. Since his first prediction of price increases, wholesale prices have already continued to rise sharply. For private consumers, however, this will probably only become noticeable “at the end of the year, or not until next year”.
It is not yet possible to estimate how much the price will actually rise – but he does not want to give a specific number for that reason, so that companies cannot rely on him in the event of possibly unjustified price increases.
Push for a European solution
Urbantschitsch argued for European solutions to keep consumer prices within a manageable range. The price ceilings in, for example, Spain and Portugal are only possible because their electricity grids are “relatively disconnected from the European one”. Whatever measures are taken, it is important to reduce overall consumption.
The head of the energy regulator is skeptical about a tariff cap for electricity in Austria. “If Austria were to restrict the price of electricity itself in the form of an intervention in wholesale prices, the result would be that the Austrian taxpayer would pay for something that would also benefit other customers in other countries,” explains Urbantschitsch.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
