French Prime Minister Elisabeth Bourne on Monday called on bosses to take measures to reduce energy consumption. “If we act collectively, then we can overcome the risk of shortages, but if not everyone participates and if all the bad scenarios combine, then we could be forced to impose cuts on consumers,” he told business group Medef. “If we end up with rationing, companies will be more affected and, unfortunately, we have to be prepared for that,” he continued. He said the government was already drawing up contingency plans that included a “quota trading system” that would allow companies to buy and sell energy quotas. The government is also preparing measures to support companies, he said. France has warned companies they may be forced to ration energy this winter. Pictured: A cooling tower is seen at one of France’s nuclear power plants. France generates about 70 percent of its electricity from a fleet of 56 nuclear reactors, 32 of which are currently offline either for routine maintenance or to assess corrosion risks “Every company must mobilize and act. I invite everyone to draw up their own energy saving plans in September,” he said, stressing that the crisis caused by record energy prices will help the transition away from fossil fuels. “The coming months are just one step in the bigger transition we have to make.” France is more sheltered than many European countries from a rise in natural gas prices caused in large part by Russia’s decision to cut exports to Europe after its invasion of Ukraine in February in a bid to put pressure on allies of Kiev. France generates about 70 percent of its electricity from a fleet of 56 nuclear reactors, but 32 are currently offline either for routine maintenance or to assess corrosion risks. Countries such as Germany and Italy, which are more dependent on Russian gas imports for their energy, have built up storage levels ahead of the cold winter months when demand peaks – fearing what could happen when the cold snaps. German Economy Minister Robert Habeck said on Monday that German gas storage facilities have paid more than 80% and he expects prices to fall. Italy has reached a similar level, giving a cushion against further supply shocks. Also on Monday, Ukrainian President Volodymyr Zelensky accused Russia of economic terrorism as the cost of Europe’s energy crisis rose, with Germany seeking at least 19 billion euros to bail out its biggest importer of Russian gas. Rising gas prices as top exporter Russia cuts supplies have squeezed German utility Uniper, prompting it to seek additional credit lines of €4bn (£3.4bn) from Berlin on top of the bailout deal 15 billion euros agreed last month. French Prime Minister Elisabeth Borne warned on Monday of the danger of energy gluts and called on bosses to take measures to reduce their consumption How to respond to the devastating impact of rising energy costs on businesses and households is high on the political agenda across the continent as autumn approaches. The Czech Republic, which holds the rotating presidency of the European Union, has called an emergency meeting of energy ministers for September 9, when it will propose a cap on the price of natural gas used to generate electricity. “What is happening is really a pan-European problem, it has an impact on all countries, some less and others more. And that is why we are convinced that the best solution is a pan-European solution,” Czech Industry Minister Jozef Sikelá said at a press conference. Germany’s benchmark electricity prices for 2023 topped 1,000 euros per megawatt hour for the first time on Monday as supply concerns kept prices of natural gas and related fuels such as electricity and coal high . “Russia is using economic terror,” Zelensky told an energy industry conference in the Norwegian city of Stavanger. “He is exerting pressure with the price crisis, with poverty, to weaken Europe,” Zelensky told the audience through a translator. Ukrainian President Volodymyr Zelensky appears on a giant screen as he addresses the summer conference of the French business association MeDef on August 29, 2022 at the Hippodrome de Longchamp in Paris His comments come as Russia’s Gazprom plans maintenance this week that will halt natural gas flows along the Nord Stream 1 pipeline linking Russia and Germany across the Baltic Sea. The disruption has fueled fears that Russia is curtailing supply to pressure Western nations opposed to its invasion of Ukraine, a charge Moscow denies. Chancellor Olaf Scholz said on Monday that Germany will get through the winter better than some thought a while ago. Economy Minister Hambeck, meanwhile, stressed that Germany will not allow a Lehman Brothers-style domino effect to occur in its natural gas market. “I promise on behalf of the German government that we will always ensure liquidity for all energy companies, that we do not have a Lehman Brothers effect on the market,” Habeck said, referring to the collapse of the US investment bank, which helped trigger the financial crisis of 2008. There was a less optimistic forecast from the head of natural gas company Shell, who warned that gas shortages could continue. “We may well have several winters where we will somehow have to find solutions,” Shell CEO Ben van Beurden told a news conference at the industry meeting in Stavanger.
