European gas and electricity bills have doubled since October 2021. Despite all the steps and measures of the national and European authorities, it was not possible to keep prices down, moreover, experts note that without the measures taken, the cost of energy would have increased even more. This was reported by Bloomberg with reference to data from the energy consulting agency VaasaETT Ltd.
The agency notes that gas and electricity prices have reached historical records. The average retail gas price in Europe (EU + UK) has reached almost €0.18 per kWh, which is twice as expensive as a year ago. During the year, the cost of electricity for households increased by 67% and amounted to €0.36 per kWh. The increase in value occurred even against the backdrop of record-breaking measures to support the population and business – more than €550 billion was spent on relevant measures.
“Had countries not provided such support, household bills would likely have been even higher,” VaasaETT Ltd’s chief executive said. Philip Lewis.
On a monthly basis, prices rose 3.4% for electricity and 2.5% for gas. In October, prices rose the most in Dublin (Ireland), where the cost of electricity per kilowatt-hour increased by 44%, while gas prices rose the most in Rome (Italy) – immediately by 97%. Abnormally warm weather also made it possible to partially curb the rise in prices in October, but in the coming months, the agency warns, this factor will come to naught, and Europeans will face a new round of rising prices for electricity and heating.
“If the crisis lasted a full year or more, the cost of bailouts for governments would be enormous. At the same time, customers will forget that these prices are not real prices – they will take them for the norm, and then it will be almost impossible to return them to their previous level, ” predicts Lewis.
The energy crisis in Europe is caused by a sharp reduction in Russian gas supplies. Europe insists that Moscow has reduced supplies, using gas as a tool to pressure the EU to support Ukraine in the war against Russia. The Russian authorities justify the reduction in supplies with sanctions, but after the Nord Stream and Nord Stream 2 gas pipelines were blown up, these issues completely faded into the background. The European authorities continue to take measures to address energy security issues. In addition to subsidies and incentives, the authorities are considering separating gas and green energy trading, and also intend to carry out large-scale reforms that should reduce gas consumption.