Germans will face a gas shortage this winter unless they use less energy – while a new price cap could encourage more consumption

Germany’s network regulator warned that citizens are using too much gas and need to pull back consumption.
Amid colder weather, gas consumption was 14.5% above average compared to 2018-2021, Federal Network Agency data shows. 
The German government, however, has also proposed a gas price cap, which could incentivize more energy use. 

Germans have been consuming too much natural gas and must cut consumption to avoid a shortage this winter, according to Germany’s Federal Network Agency. But that could be difficult to achieve with the government proposing a price cap that could make using gas more affordable.

Amid colder weather, last week’s total gas use was 14.5% higher than the average for 2018-2021, agency data showed on Thursday. Klaus Müller, president of the Federal Network Agency, called those figures “very sobering.”

“Without significant savings in the private sector, too, it will be difficult to avoid a gas shortage in winter,” he said in a statement Thursday.

To avoid a gas shortage, a reduction of at least 20% in consumption is necessary, the regulator estimated. Consumption patterns can change quickly, and “savings must also be made when temperatures continue to fall and that is not a sure-fire success,” Müller said.

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The warning came as Germany continued to stockpile gas, with storage levels at 91.5% of capacity. Russia’s weaponization of energy via Nord Stream pipeline cut-offs, among other things, have forced Europeans to scramble for enough supplies to get through the winter.

Meanwhile, the German Chancellor Olaf Scholz announced Thursday there will be a price cap on natural gas, saying prices for consumers need to come down.

But that could make it harder for households to save gas, as lower prices incentivize more energy use. 

The German government will also provide funding of up to 200 billion euros for an “economic difference shield.”

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