LAST UPDATE 15:10
The pressure on Europe’s energy crisis continues unabated, with Germany and France today seeing electricity prices for next year soar to unprecedented levels.
In particular, as reported by Bloomberg, the year-ahead contract in France increased today up to 13%, reaching 1,022 euros the megawatt hour on the European Energy Exchange.
Similarly, German electricity prices for the coming year rose up to 828 euros the megawatt hour today, having soared by 48% within the current week – at tenfold levels from the same period last year.
A significant part of the pressure on French prices comes from the fact that Electricite de France announced that some of its nuclear plants will restart later than originally estimated.
These units will be the main source of energy this winter as natural gas flows remain extremely tight.
At the same time, the price of natural gas in Europe remains firmly above the dizzying level of €310, with the September contract trading today on the Amsterdam Hub (TTF) in 316.8 euros the megawatt hour, falling by 1.5%.
As Bloomberg points out, electricity prices are breaking records on an almost daily basis as Russia has cut gas supplies ahead of the critical winter heating season.
In turn, the unprecedented rise in energy costs is fueling inflation and threatening the finances of households and businesses across Europe.
Earlier today, after all, it was known that energy bills in Britain will increase by 80% from October.
Specifically, the country’s energy regulator has announced that it will increase the cap on energy consumption bills to £3,549 on average from £1,971 a year.
Source: Capital
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