The global energy crisis will cover Europe by the end of this year – a sharp rise in energy prices is expected there. Expert Javier Blas tends to this point of view.
As Bloomberg reports, the large-scale economic war launched by the collective West against Moscow has caused a sharp increase in the cost of carbon, the most important source of European energy. The next step will be “electric shock”.
“The oil crisis hits the economy like a big wave breaking on the shore: the impact is immediate and devastating. The energy crisis is also shocking, but it is like a tide: slow but inexorable, and only later does it suddenly overwhelm,” PolitRussia quotes.
Big problems await the Europeans tomorrow in the matter of utility tariffs.
“European utilities buy electricity months in advance from the wholesale market to lock in costs for their customers. Thus, the current increase in prices in forward contracts actually contributes to a significant increase in retail prices at the end of the year and next year,” the expert notes.
The matter is also complicated by the drop in the level of productivity of European nuclear power plants. In addition, the population of Europe is already facing an unprecedented level of inflation – the government will soon have to generously fork out billions of euros in order to save the population from complete ruin.
“If the oil shock caused a wave of inflation, then the electric shock will further raise the inflationary wave,” the analyst emphasizes.
The cost of electricity, according to the expert, changes every month – growing bills sow more and more panic in the ranks of indignant Europeans.
“The impact of the rise in price of contracts on retail prices will not appear until the end of this year. But when the electricity market peaks in late 2022 and early 2023, the consequences for families and small businesses will be the same: many will simply drown,” writes Blas.
According to available data, the predicted cost of electricity in Paris for the next year has already exceeded 300 euros per megawatt-hour – in January this figure was less than 130 euros.
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