German energy agency warns: 75% of gas storage levels still not optimistic, huge cost of ending reliance on Russian gas

The energy crisis has become a growing concern for Germans since the ongoing rounds of EU sanctions against Russia have led to a continued tightening of Russian energy supplies to Europe.

Germany's energy regulator, the Federal Network Agency for Energy Regulation (BNA), has said that Europe is facing the worst energy crisis in a generation. Germany must cut its gas use by 20 per cent to avoid a severe gas shortage this winter.

Europe must cut gas use by 20%

On Sunday local time, Klaus Müller, head of Germany's federal network agency, warned that "if we don't meet the target [of saving 20 per cent of gas], then we are at serious risk of a gas shortage."

Müller said that Germany would also need additional gas supplies from other sources, mainly from the US and other European countries, to make up for the shortfall in supplies from Russia.

Over the weekend, the German economy ministry has ordered all German companies and local authorities to lower the minimum room temperature in workplaces to 19 degrees Celsius during the winter, in the hope of saving on electricity consumption.

The BNA is the highest authority responsible for the rationing of gas supplies in Germany. Germany has now entered the second phase of its national gas emergency plan. If the situation escalates to the third stage, the BNA will be responsible for outlining a gas distribution plan and suspending gas supplies to some businesses, as Germany's gas supply will not be able to cover all factories and homes.

Muller said the BNA was doing "a lot of research" to determine which companies should be given priority in the rationing.