European natural gas and power prices surged after Germany triggered the “alarm stage” of its NatGas-emergency plan amid reductions in supplies from Russia, according to Reuters.
German Economy Minister Robert Habeck said Europe’s largest economy is in a severe energy crisis. He warned Germany should prepare for further cuts in Russian NatGas flows after Moscow recently slashed deliveries via the Nord Stream pipeline.
“We must not fool ourselves: The cut in gas supplies is an economic attack on us by Putin,” Habeck said.
“It is obviously Putin’s strategy to create insecurity, drive up prices and divide us as a society. This is what we are fighting against,” he continued.
Habeck wasn’t clear if NatGas rationing would be avoided.
The second “alarm stage” of a three-stage emergency plan allows utility companies to pass on higher power prices to industry and households to curb demand. The move comes as the Nord Stream pipeline to Germany operates at 40% of capacity