Its prices continue their explosive rally energy in Europe, due to the worst crisis of recent decades, increasing pressure on the leadership of the EU member states. do more to help businesses and households.

It’s price natural gas in Europe, it rose to new highs, exceeding 300 euros per megawatt-hour, due to growing concerns about supplies from Russia. Natural gas, which is used to generate electricity and heat, now costs about 10 times more than it did a year ago.

At the same time, in the afternoon, the price of Brent oil was in the region of $101.57 per barrel, while US oil also rose, touching $95.

Already at the beginning of the year, the volume of natural gas from Russia to the Old Continent decreased by about 75%, and on August 31, flows from the Nord Stream 1 gas pipeline should be completely stopped for three days, which will increase pressure on energy prices. It is noted that the Russian “Gazprom” continues a temporary stop, citing maintenance. In this context, EU member states have begun to express concern, planning to take action.

New electricity price record

Electricity prices linked to the price of natural gas rose on Friday to record highs in Central Europe. In Italy and France, prices reach 718 euros per MWh, showing an increase of more than 10%.

Prices in the Czech Republic, Slovakia, Slovenia, Romania, Croatia and Belgium are above 700 euros per MWh. In Germany, the price is 699 euros per MWh.

In Greece and Bulgaria prices reach 402 euros. In Iberia, which has received a special exemption from Brussels, the price in Spain – Portugal is 175 euros.

Fuel prices: another rally at a gas station is just around the corner

Energy uncertainty is hitting households and businesses, and where at least fuel prices started to decline in the past period, a new growth rally has begun.

According to market factors and as they say moneyreview.grgasoline rose 5 cents a liter from the previous week, while diesel saw a big increase, reaching 15 cents a liter during the week.

Why are energy prices rising?

As Russia turns off the tap, rising prices reflect fears that Europe will run out of natural gas this winter. Russia has cut gas supplies to Germany and other countries. Even before the upcoming three-day shutdown, gas flow through Nord Stream 1 was only 20% of its capacity. These cuts are forcing gas suppliers to buy locally delivered gas at higher and more volatile prices than Gazprom’s long-term contracts.

In many countries, gas and electricity prices are linked. Although there are several ways to generate electricity, the price of natural gas has a big impact on the price of electricity. “Natural gas is the driving force behind European electricity prices,” Ian Kohn, a former chief executive of major British utility Centrica, told the New York Times.

These relationships make Europe more vulnerable to Russia’s energy war. Unlike the United States, which has a surplus of natural gas to export, Europe needs to import most of its natural gas, with Russia traditionally supplying about a third of it. Long before Russia’s invasion of Ukraine in February, European gas and electricity prices rose due to supply problems. “When natural gas supplies become limited, the electricity market shrinks,” Mr. Cohn said.

Other factors affecting electricity prices are low water levels in Europe’s rivers, which prevent fuel from being delivered to factories and affect the operation of European hydroelectric power plants.

Germany ‘cuts’ natural gas while report is hidden

It is worth noting that yesterday the German government approved two packages of measures in the context of the law on energy saving. The first 6-month package is valid from September 1, the second two-year package from October 1. However, this package requires the approval of the Federal Council before it can be implemented.

According to Deutsche Welle, the goal is to reduce natural gas consumption by 20% by March next year, compared to the average for the previous five years. According to the Ministry of Finance, the target of 5% to 8% has already been achieved.

Below are some indicative measures for the first package:

• 19 degrees maximum heating limit in public buildings,
• Switching off lighting in monuments and buildings, when done for aesthetic reasons,
• Private pools, indoor or outdoor, must not be heated by natural gas or electricity.
• Illuminated billboards or systems will be turned off from 22:00 to 06:00 am, except when necessary for safety reasons, such as at railway underpasses.

In addition, retailers must keep the front doors of their stores closed. In fact, the industry is launching an awareness campaign with a “doors closed, shops open” poster. Thus, they want to avoid misunderstandings with customers who want to enter the stores.

The second package of measures concerns public, corporate and private buildings and residential buildings. Annual heating inspections for buildings heated by gas will become mandatory. For example, systems should be set to a lower supply temperature and less nighttime operation. Inefficient natural gas heat pumps should be checked annually and replaced if damaged.

Companies with an energy consumption of 10 gigawatt hours or more per year are required to take energy efficiency measures if they have already completed an energy audit that highlights consumption and potential savings.

Reuters: Putin is betting on a “harsh winter” in the EU

Harsh winters had previously helped Moscow defeat Napoleon and Hitler. So today Vladimir Putin is betting on rising energy prices and possible shortages this winter to convince Europe to force Ukraine to agree to a truce – on Russia’s terms.

According to two Russian sources close to the Kremlin, this is the only path to peace that Moscow sees, while Kyiv says it will not agree to negotiations until all Russian forces leave Ukraine.

“We have time, we can wait,” said one of the sources, who declined to be named because he is not authorized to speak to the media. “It will be a difficult winter for the Europeans. We predict protests and riots. “Some European leaders may think twice before continuing to support Ukraine and think it’s time for a deal.”

A second source said that “cracks” in European unity are already visible in Moscow, and this phenomenon is expected to worsen due to the difficulties of the winter season. “It will be very difficult if the war continues in autumn and winter. So there is hope that they will call for peace,” the source said.

The Kremlin has received no immediate response, which denies that Russia is using energy as a political weapon. Ukraine and its staunchest supporters in the West say they have no plans to change their stance, while U.S. officials, speaking on condition of anonymity, said they see no sign of a withdrawal of support for Kyiv yet.

^{According to moneyreview.gr, Deutsche Welle, Reuters, New York Times.}