Germany is considering direct intervention in the energy market to avoid a wave of insolvency amid soaring gas prices. Lars Klingbeil, an MP from the ruling Social Democratic Party, told Bloomberg.

The German government allows gas companies to pass on some of the higher costs to consumers, but has so far avoided direct interventions such as price caps.

Last week, European Union energy ministers called on the European Commission to develop urgent measures to curb gas prices and provide liquidity to traders affected by massive margin calls.

The ministers did not call for mandatory energy cuts. Instead, countries are taking various steps to reduce demand, from lowering temperatures in public swimming pools to providing financial incentives to households.

German Chancellor Olaf Scholz said Saturday that the country is well prepared in case gas supplies from Russia completely stop, but many economists and municipalities doubt it.

The crisis is steadily worsening as Russia restricts supplies. Gas prices in Europe are about four times higher than they were a year ago, and looming insolvency of key firms could bring Germany's economy, Europe's largest, to a halt.