European electricity prices hit a record high on Friday (Aug 26), a sign that the region is at risk of a harsh winter. During the Russian invasion of Ukraine causing painful economic impacts across the continent
The electricity price of one-year futures contracts in Germany hit 995 euros (about 35,700 baht) per megawatt hour, while France surged past 1,100 euros (about 39,500 baht), a more than 10 times increase from a year ago in both countries.
In the UK, energy regulator Ofgem said it would almost double the ceiling and gas prices starting from October 1. That’s an average of £3,549 per year (about 150,000 baht).
Ofgem blames soaring wholesale gas prices around the world After lifting restrictions against COVID-19 and movements limiting Russia’s supply
czech republic which is the rotating chairman of the European Union It said on Friday it would call an emergency meeting on the energy crisis as soon as possible.
Energy prices soar in Europe After Russia cut its supply of natural gas to the continent, there were concerns that Moscow might cut more heavily during the winter. amid tensions between Moscow and the West About the war between Russia and Ukraine
About one-fifth of Europe’s electricity comes from gas power plants. Therefore, when the supply is reduced Therefore, it is inevitable that the price will skyrocket as a shadow.
European gas prices on Friday (Aug 26) hit 341 euros per megawatt hour. Close to the highest level of all time which had soared to 345 euros in March
War is not the only factor in France. The movement shut down several nuclear reactors. due to wear issues It is another reason that drives the price of electricity in France soaring. This is because the power generation in the country is greatly reduced.
On Thursday, energy giant EDF operated only 24 of the 56 nuclear reactors.
Such factors resulted in France now becoming an importer. from the former being an exporter of electricity for a long time
“This winter is going to be a tough time for all European countries,” said research assistant Giovanni Karavetti. from the Bruegl Research Institute in Brussels told AFP. “The price will continue to be high. And there is a possibility that it will be higher.”
The Bruegl study found that EU countries allocated 236 billion euros from September 2021 to August 2022 to protect households and corporations. from rising energy prices Which has begun to rebound since the time when many countries came out of restrictions to prevent Covid-19 and soaring even more After the war between Ukraine and Russia
not long ago Many countries have announced plans to save energy. Support people to reduce their energy consumption during winter.
Germany on Wednesday (Aug 24) announced that it limits the temperature ceiling by government agencies to 19 degrees Celsius this winter. From September onwards, heating of private pools is prohibited for 6 months.
Finland encourages civilians to lower temperatures Bathe less and spend time in the sauna. which is the custom of the people in the country to be shortened
In France, households will be protected through measures to limit the energy price ceiling From now until December 31
various industrial sectors It was also affected by rising energy prices. by the factories that produce ammonia which is an ingredient used to produce fertilizer It announced the suspension of their operations in Poland, Italy and Norway in the middle of last week.
HSBC Bank warned in the memo that “Recession in the Eurozone It is something that cannot be avoided. with the economy shrinking in the fourth quarter and the first quarter of 2023.”
(Source: AFP)