Europe must do more to bring down power bills for consumers as wholesale costs soar to levels last seen during the 2022 energy crisis, Eurelectric said. In a letter to European Union energy ministers, the trade group called for "targeted, time-limited" relief measures. It said governments should strip bills of "non-energy costs," which include charges for the grid and environmental levies.
Conflict in the Middle East has upended global energy markets this year, driving up prices for gas and other fuels and exacerbating cost-of-living pressures across Europe. The squeeze on household finances has fed into a wave of demonstrations in multiple countries, with France a particular flashpoint.
"Once again, Europe is paying the price of its exposure to imported fossil fuels," Eurelectric President Markus Rauramo and Secretary General Kristian Ruby said in the letter. "Bills are rising for households, energy-intensive industries are under pressure."
Wholesale electricity prices for winter in Europe's biggest power markets are twice as high as last winter, reaching levels last seen in 2022. That is largely a result of soaring natural gas, which topped €100 a megawatt-hour this week and has more than tripled since the start of the year.
Yet Eurelectric warned against subsidizing gas-fired power generation, an option being discussed in Italy, saying such a move would increase gas demand at a time when countries should be reducing it.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing