Energy Security Act: Federal Council votes for protective gas shield

Possible state aid for energy suppliers and more coal-fired power plants – this is how Germany is preparing for a gas supply stop from Russia. The law required for this has now also passed the Bundesrat. It hurts all the greens.

After the Bundestag, the Bundesrat also approved a reform of the Energy Security Act (Ensig). The law enables the federal government to react quickly to a further shortage of gas supplies and even higher prices.

The reform makes it possible for the federal government, for example, to support ailing importers such as Uniper, up to and including state entry, based on the example of the Lufthansa rescue in the Corona crisis. Uniper had asked the state for help. According to Bremen Mayor Andreas Bovenschulte, the importer could be supported by the federal government with a “9 billion injection”. That said the SPD politician in the Bundesrat. In the afternoon, Uniper CEO Klaus-Dieter Maubach wants to comment on the topic.

Habeck speaks of a “sharp sword”

Federal Economics Minister Robert Habeck said that the amended Energy Security Act gave the federal government far-reaching opportunities to intervene in market mechanisms, but also in people’s habits. Habeck spoke of a “sharp sword” that should only be drawn with caution.

As an option, the law now provides for a pay-as-you-go system so that price increases in gas for energy suppliers can be passed on more evenly to customers – as a replacement for the rules that were possible up to now. The federal government can also prescribe measures to save energy.

Worries about Nord Stream 1 maintenance

It is now also possible to restart coal-fired power plants that are scheduled to be shut down in order to take gas-fired power plants off the grid in return. Minister of Economics Habeck has already announced a ministerial regulation as soon as the Federal President will sign the law in the next few days in order to bring the charcoal piles to the grid quickly.

This should help to prepare for the winter in particular, when burning gas to generate electricity will be replaced. The background is the fear that gas could no longer be delivered from Russia to Germany after the maintenance of the Nord Stream 1 pipeline began on Monday. Actually, the maintenance should only last ten days. But Habeck also thinks a longer shutdown by Russia for political reasons is possible. Less than half of the gas ordered already flows through the pipeline, for which Russia cites technical reasons.

Kretschmann: “We are in an emergency situation”

Habeck said in the state chamber that the possibility of pushing gas-fired power plants out of the market so that more coal-fired power plants can be used is a step backwards in terms of climate policy. However, this is necessary in order to reduce gas consumption.

The Baden-Württemberg Prime Minister Winfried Kretschmann said about the use of more climate-damaging coal-fired power plants: “Of course, this point hurts a lot, but we are in an emergency situation. If there is a fire, you don’t ask where the extinguishing water comes from, but extinguish it.”