German Energy Apocalypse Update VII
Feared gas shortages are causing chaos as customers rush to change suppliers in search of better prices, or because their current contracts have been cancelled. Several municipal utilities have flatly stopped accepting new customers, but this option is not available to the so-called Grundversorger or “basic suppliers”—the utilities that supply the majority of gas in their region. These are legally bound to take all comers, and many of them are already having difficulty meeting sudden surges in demand.
Their day-to-day solvency may also soon be a problem:
[I]t is not only the procurement prices that have risen sharply, but also the interim financing costs—that is, the sum with which the municipal utilities must bridge the time from the purchase of gas to the onward sale to the customer, and to the increase in customers’ instalment payments, [an Association of Municipal Enterprises] spokesman explained. “Both together increase the liquidity needs of the municipal utilities, and this in turn affects their ability to supply customers with electricity and gas.”
Zelensky’s economic advisor has announced that he expects the Federal Republic to contribute
500 million dollars every month to Ukraine’s defence. That sounds like a lot, but we must remember that Germany’s antigen testing program, at its height,
cost around a billion Euros a month. The government has been pissing away money on crazy things for a long time now.
A survey of German companies, the majority of them small businesses, shows that 25% (up from 14% four months ago) are considering whether to lay off employees, and that 90% are planning to raise prices further than they already have. Almost six in ten are delaying planned investments.
“We have been seeing a creeping shift in industrial production for some time now,” says Rainer Kirchdörfer, Chairman of the Family Business Foundation [which conducted the survey]. “We will only recognise the deindustrialisation and loss of prosperity years from now, and by then it will be irreversible.”
https://www.eugyppius.com/p/german-e...pse-update-vii