Causes and consequences of high energy prices

In the European Union, the cost of energy has risen sharply. Household bills for electricity and gas are expected to rise by 40% in countries such as Italy. The economy as a whole is starting to consume them more with the lifting of restrictions linked to Covid-19. The lack of energy is also facilitated by the fact that, in order to protect the environment, member countries have closed nuclear and coal-fired power plants. Brussels has set a consistent goal for other EU capitals – to reduce the impact on climate to zero by mid-century.

Representative of the European Consumers Association Dmitriy Verne believes that it is necessary to significantly reduce greenhouse gas emissions:

“In fact, our dependence on fossil fuels such as gasoline and natural gas makes energy more expensive in Europe. Our association is calling for a rapid transition to an energy system that relies more on renewable sources such as wind and solar also for the electrification of transport, heating and cooling.”

However, renewable energy sources are not yet able to meet the increasing demand for them. As a result, many Europeans suffer from energy poverty. Brussels estimates that around 34 million EU citizens cannot afford to properly heat and light their homes. To help them, the European Commission is creating a Social Climate Fund. Gas expert Dennis Hesling advised her:

This also serves the so-called “Clean Energy Package”, which came into effect in 2019. It helps protect consumers from rising energy prices, especially in vulnerable segments of society, by providing them with special conditions. In particular, such people should not turn off their light or gas simply because they are no longer able to pay their bills. Some EU member states offer special tariffs for these consumers. Others are replacing old industries and other facilities that burn a lot of energy with newer and more efficient ones. “

Economist Carlo Andrea Pollino notes that increased gas imports from Russia, with German approval, threaten the energy security of the European Union:

I would like to tell our German friends that issuing a permit to build the Nord Stream 2 gas pipeline is not part of the overall vision for Europe. This weakened the position of the European Union as a guarantor of the common good in favor of the mercantilism of some powerful countries, such as Germany. Brussels did not have the courage to say no to Berlin.”

Warsaw said on Tuesday that the rise in gas prices proved the fallacy of the Nord Stream 2 project.

The European Commission said it was “closely” monitoring price developments. Brussels once again offered long-term solutions, such as investing in energy conservation and developing renewable energy sources.

.

Leave a Comment