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Running out of natural gas stocks and low wind speeds have caused electricity prices to skyrocket across Europe, putting pressure on governments as consumers protest against soaring electricity bills before the winter heating season.
Electricity prices from UK to Spain have hit record highs, Spaniards have taken to the streets, while prices so high in Europe could become a drag on economic recovery after the pandemic.
In Spain, day-ahead electricity prices hit a new record this week, which is “a huge political problem”. said Javier Blas, chief energy correspondent at Bloomberg News.
Spanish consumers are protesting against utilities, as households now pay about double the price of electricity compared to what they paid at the same time last year, reports The New York Times.
Electricity prices also hit record highs this week in the UK, Germany and France.
In Ireland, generally an exporter of electricity to the UK, a second amber alert “due to a production shortfall” was issued just this week. The insufficient electricity supply on Thursday led to the suspension of the Moyle interconnector, which exports electricity from Northern Ireland to Scotland across the Irish Sea.
In the UK, high natural gas prices and low wind speeds created a perfect storm for day-ahead electricity prices, which hit new highs this week.
The UK, along with the rest of Europe, is bracing for further increases in electricity prices at the start of the heating season. Stored natural gas levels in Europe are significantly below normal due to a cold snap in the spring and soaring natural gas prices amid declining Gazprom shipments and soaring gas prices liquefied natural (LNG).
For European consumers, energy prices are a sore point, and this year’s surge in prices is fueling inflation and the cost of goods.
In Germany, Europe’s largest economy, rising energy prices pushed annual inflation to a 13-year high in August, as home energy, fuel and food prices rose. leaped. Spain has also experienced a rise in inflation to the highest in several years due to soaring electricity prices.
By Charles Kennedy for Oil chauffage
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