The Limited Times

Now you can see non-English news...

Energy prices break records in Europe as crisis intensifies

2022-08-30T14:17:16.324Z


Energy prices in Europe continue to rise, while the crisis intensifies and concerns for the winter are heightened.


Concerns about projected growth in poverty in the UK 1:06

(CNN Business) ––

Energy prices in Europe continue to break records, while the crisis in the region intensifies and concerns about access to electricity and heating are heightened as temperatures begin to drop.

Next year's energy costs in Germany, considered Europe's benchmark, briefly spiked above 1,000 euros ($999.80) per megawatt hour on Monday, before falling back to 840 euros. ($839.69) per megawatt hour.

  • What is natural gas and how is it obtained, a key energy source that was left in the middle of the world dispute

"This is not normal at all. It is incredibly volatile," said Fabian Rønningen, principal analyst at Rystad Energy.

"These prices are reaching levels now that we thought we would never see," he added.

Fears about Russia

Energy prices have surged since Russia's Gazprom announced it would shut down the Nord Stream 1 gas pipeline for three days, starting Wednesday, for maintenance work.

A move that reawakened fears that Moscow could shut off gas supplies to Europe completely.

Just as the region scrambles to stockpile supplies ahead of winter.

Last July, when the key pipeline was closed for repairs for 10 days, many lawmakers feared it might not reopen.

And by the time Russia restarted operations, the flows were significantly reduced.

advertising

  • Europe plans to force countries to ration gas as Russia uses energy as a weapon

France's nuclear sector, which provides about 70% of the country's electricity, is also facing difficulties due to lower production.

What has raised energy prices in the nation.

The Czech Republic announced on Monday that it would convene an emergency meeting with Europe's energy ministers in Brussels next week.

Meanwhile, the continent seeks solutions.

The energy picture in Europe before winter

Companies worry that they will have to periodically stop operations during the winter if there is a power shortage.

Meanwhile, households could struggle to pay skyrocketing heating bills.

The consequences could trigger a deep recession.

However, there was reason for some optimism this Monday.

German Economy Minister Robert Habeck said the country's gas inventories are rising.

In that sense, he added that the nation will not have to pay the high prices currently demanded by the market.

Germany's gas storage facilities are nearly 83% full and will reach the 85% threshold in early September, according to Habeck.

However, great uncertainty remains.

High energy prices for next year indicate that traders do not believe that the crisis will be contained in the coming months, according to Rønningen.

"It may well be that we have several winters where we have to somehow find solutions," Shell Chief Executive Ben van Beurden told a news conference in Norway on Monday.

Uniper, Germany's biggest importer of natural gas, said on Monday it would need more help from the government, requesting an additional 4 billion euros ($4 billion).

The company explained that it is short on cash due to shortfalls in Russian exports, forcing it to pay sky-high market prices to fill gaps in supply.

Price increaseEnergyPrices

Source: cnnespanol

All news articles on 2022-08-30

You may like

Trends 24h

News/Politics 2024-03-28T06:04:53.137Z

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.