Gas prices went down today, but they are still ten times higher than last year. Gas utilities shares are in free fall, because of insolvency fears. Months of purchases on the spot market at astronomic prices have created giant holes in their budgets and evoke the ghost of the Lehman Brothers moment, prompting governments to bail them out in order to avoid a chain-reaction collapse. Uniper head Klaus-Dieter Maubach said that “the worst is coming” and the media report that the German utility might need another 7 billion Euro injection at the end of the month. We have earlier reported here about bailouts in Sweden and Austria, and yesterday the Swiss government opened a 4 billion CHF (4.1 bn Euro) credit line to the Axpo energy company, which produces and sells “renewable” energy.
In the UK, Centrica is negotiating an extra multibillion credit line with the banks, the FT reports.
In Italy, consumer association Assoutenti has demanded that the government publish figures of utility accounts, before the crisis explodes (see slug).
