Heat will stay on in Europe this winter, but after?
Russia's progressive reduction of gas supplies to Europe via pipeline triggered Europe is likely to scrape a bidding war for liquefied through this winter without natural gas (LNG), sending cutting off gas customers prices sharply higher. despite reduced Russian supplies, If certain countries like but even adjusting to France and Spain froze prices colder homes and paying for consumers, others like more may not be enough in Belgium let suppliers more or coming years, analysts say. less pass along the higher costs.
"I like a hot house, I have "I was a little panicked in to admit... I really used a lot the beginning," said de Rous, of gas," said Sofie de Rous, who saw the gas bill to heat her who until this year kept her 90-square-metre (970-squarefoot) home on the Belgian coast at house in Oostduinkerke a toasty 21 degrees Celsius jump from 120 euros ($126) (70 degrees Fahrenheit). per month to 330 euros. She
But like millions of has lowered her thermostat other Europeans, the 41year-old to 18 degrees and is looking employee at an into installing double-pane architectural firm has had to windows and a solar panel. turn down the thermostat Like de Rous, the lack after energy prices surged of concern about energy following Russia's conflict consumption of a whole with Ukraine in February. generation of Europeans ended abruptly in 2022, and everyone is mindful of where their thermostat is set.
If previously natural gas was cheap and plentiful, it is now scarce and expensive.
The European wholesale reference price used to fluctuate little, hovering around 20 euros per megawatt hour. This year, it shot as high as 300 euros before dropping back to around 100 euros.
"It's the most chaotic time I've witnessed in all of those years," Graham Freedman, a European gas analyst at energy consultancy Wood Mackenzie, told AFP.
Sky-high energy prices have caused numerous factories, particularly in Germany's chemicals sector which was highly dependent upon cheap Russian gas, to halt operations.