Russian President Vladimir Putin indicated that EU gas supplies are at optimum supply, as agreed on. But, he said Gazprom would not pipe in more than required. That depends on the EU leaders to decide what they'll do.
According to the Kremlin last Wednesday, the EU gets the supply it signed for, and no increase will be allowed. But, Russia says that its actions do not mean it has weaponized gas supplies as some have charged.
Renegotiation might help the energy crisis
To date, Gazprom, a Russia-based energy firm which is the biggest one, said the gas is flowing to Europe, based on levels before the energy crisis, reported the Express UK.
Kremlin Spokesperson Dmitry Peskov informed that agreed levels are piped in, and contracts are followed in a press conference. He said there would be no free gas or increases, and it would be Gazprom and the EU to decide the outcome if there is renegotiation.
The deputy energy minister Pavel Sorokin will keep its timetable for gas to be supplied in storage until November 1. He added Russia would not provide extra gas supplies to Europe as well, cited 7 News.
Europe on the rocks
Gas prices in the European market have skyrocketed in October, which prompted some to accuse Putin of controlling the gas lines for its new Nord Stream 2. It stretches from the Baltic to Germany, and he is not using gas as leverage too.
The Ofgem is preparing for the worst scenario should there be less gas available tomorrow. Gas will be an expensive commodity and stay at a record level. Already EU gas supplies are at the behest of Vladimir Putin and the firm Gazprom as is the US which is feeling the pinch.
Fuel crisis experienced globally
A global shortage of gas supply by Russia drove the prices of this valuable commodity to 250 percent from January of this year.
According to Sky News which four suppliers are discussing with Ofgem, they are talking about entering its Supplier of Last Resort (SOLR) system.
This system works when the energy firm has crashed, prompting its customers to go to a solvent company without interruption of their supplies. There is a good chance the rising gas prices will affect countless households if the crisis is not solved anytime sooner. Already the current price has affected many, especially this coming winter.
Sources in the energy industry have reported that a few of these four companies have stopped buying supplies by tomorrow.
The energy market is turning into a wholesale massacre, including Pure Planet, abandoned by its backer BP that decided to cut its losses. Leading cease financial help to the beleaguered energy firm.
Still, one executive of the most prominent energy firm mentions the dire situation, which will push equally more stable companies in the SOLR mechanism but have fewer customers than Pure Planet, according to a representative from the smaller firm that has 250,000 customers. Other smaller firms might fold as the gas supply dwindles, including Ampower, Zebra Energy, and Neon Reef as the victims of the energy recession.
First established in 2003, SOLR is a mechanism to keep gas supplied to households in times of crisis. It seems that it got worse than ever on the energy tap.
Gazprom did not increase the EU gas supplies, which caused energy firms to crash, but Vladimir Putin says renegotiate. It's the leader of the member state's move now.
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