BERLIN (Pakistan Point News / Sputnik - 26th April, 2022) German Federal Government passed a bill that would protect essential infrastructure companies in the energy sector in emergency situations, with measures ranging from trusts to nationalization in particularly grim scenarios, German Federal Ministry for Economic Affairs and Climate Action said on Monday.
"The Federal Government continues to prepare for an escalation of the situation on the energy markets. To this end, the Federal Cabinet today adopted an amendment to the Energy Security Act in a written circulation procedure (by a poll of cabinet members)," the ministry said in a press release.
The bill was passed under a procedure that entails its further consideration in Bundestag committees until it is released for another vote.
The Energy Security Act was passed in response to the oil crisis in the 1970s, and the current amendment brings "a major update so that the federal government is ready to make the necessary decisions promptly and comprehensively," the statement said.
The main tool will be introducing trusts to govern enterprises managing critical energy infrastructure if they are failing to fulfill their obligations or if the security of energy supplies is under threat. The most extreme measure, nationalization, will only be taken under "clear conditions," in cases when ensuring energy supply is impossible through other ways.
