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Bloomberg | Germany Mulls Uniper Bailout to Stem Russian-Gas Contagion, 30 June bail out
Uniper, the largest buyer of Russian gas in Germany, said it's discussing a possible increase in state-backed loans or even equity investments to secure liquidity. The crisis could also affect Finland, which controls Uniper's parent Fortum Oyj. The utility said Uniper's rescue requires a national effort "in Germany."
German Economy Minister Robert Habeck has warned that a squeeze in Russian gas supplies risked creating deeper turmoil, likening the situation to the role of Lehman Brothers in triggering the financial crisis.
< wipes tears >
If utilities like Uniper can't deliver, there's danger of spillover on local utilities and their customers, including consumers and businesses, Habeck warned after raising the country's gas risk level to the second-highest "alarm" phase last week.

Despite the heightened alert, the government didn't implement legislation that would allow energy companies to pass on increased prices to customers.

socialize loss solution
"Since Uniper can't yet pass on these additional costs, this results in significant financial burdens," the company said. The ability to pass along higher costs "would be a necessary and essential prerequisite for being able to issue a new earnings outlook with sufficient certainty," it said.
by Cat on Fri Jul 1st, 2022 at 07:45:09 PM EST
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