Depleted natural gas inventories and low wind speeds have led to rising electricity prices across Europe, putting pressure on governments as consumers protest rising electricity bills ahead of the heating season winter.
UK electricity prices in Spain have jumped to record highs, people in Spain have taken to the streets, while such high prices across Europe could become an obstacle to the economic recovery of the UK. pandemic.
In Spain, day-to-day electricity prices have risen to a new record this week, which is “a huge political problem” he says Javier Blas, energy correspondent for Bloomberg News.
Consumers in Spain are protesting against utilities, as households now pay twice the price of electricity compared to what they paid at this time last year, the New York Times reports.
Energy prices hit records this week in the UK, Germany and France, too.
In Ireland, typically an exporter of electricity to the UK, a second amber alert has been issued just a week “due to a generation deficit”. Insufficient electricity supply on Thursday led to the suspension of the Moyle interconnector, which exports electricity from Northern Ireland to Scotland via the Irish Sea.
In the UK, high natural gas prices and low wind speeds have created a perfect storm for next day’s energy prices, which have hit new records this week.
The UK, as well as the rest of Europe, are preparing for new energy price hikes when the heating season begins. Natural gas levels stored in Europe are significantly below normal, due to the cold storm in the spring and rising natural gas prices amid lower shipments from Gazprom and rising prices of liquefied natural gas (LNG).
For European consumers, energy prices are a painful point and this year’s rising prices fuel inflation and the cost of goods.
In Germany, the largest economy in Europe, higher energy prices pushed annual inflation to a 13-year high in August, as prices of domestic energy, motor fuels rose and food. Spain also recorded a jump in inflation to the highest in several years due to rising electricity prices.
By Charles Kennedy for Oilprice.com
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