According to the Times, gas prices in Europe rose to unprecedented levels on Monday as Russia prepares to cut off pipeline supplies to countries in the bloc.
In Britain, gas prices rose to 719 pence per BTU, more than 13 times the average price in the decade before the crisis.
At current prices, bills could rise again to £4,650 a year in January and £5,341 in April, experts predict.
Rising gas prices are pushing up household energy bills and threatening to put further financial pressure on consumers bracing for a very cold winter in Europe.
Concerns have grown over the risk of power shortages leading to blackouts this winter, but a spokesman for the British prime minister on Monday reiterated the government’s position that consumers can be assured of supply.
Most households’ annual bills are expected to rise by 80% to £3,554 a year from October, according to estimates from Cornwall Insight, a company that provides information and analysis on energy markets.
Craig Lowry, principal consultant at Cornwall Insight, warned: “It’s hard to know how many people will be struggling next winter” and called for the government to come up with a “comprehensive energy subsidy scheme and one that provides permanent support to consumer bills”. execute
He added: “The energy crisis is not something that can be solved quickly, and short-term policies will cause a delay of several months.”
Europe relies on Russia for 40 percent of its supplies, but Moscow has cut gas flows in an apparent response to Western sanctions imposed after its invasion of Ukraine.
Energy giant Gazprom has already cut supplies to Germany via the Nord Stream 1 pipeline to a fifth of normal levels and is now shutting down the entire pipeline for three days next week, citing maintenance.
Tom Marzik Manser, head of gas analysis at Icis, said the decision had “sent European gas markets into a frenzy”.
“There’s a real fear in the market that the pipeline won’t come back into service,” he said.
Britain imported little gas from Russia before the invasion and had not received any shipments since March.
However, its market is linked to a pipeline to the continent, and shortages have led to increased demand for gas from other sources such as LNG and pipeline imports from Norway, pushing up prices in the UK and Europe.
And analysts at Investec said that “Russian gas supplies to Europe are now down 75%” ahead of Gazprom’s announcement, which “raised gas prices in Europe to an all-time high (ten times the ten-year average) for one period. Five consecutive days
They warned that prices are likely to remain high as futures prices in 2025 reach three times the 10-year average.
Source: Lebanon Debate
