Because of the conflict in Ukraine, energy prices have reached all-time highs, potentially resulting in several long, cold winters for Europe.
Belgian Prime Minister Alexander De Croo warned on Monday that the next five to ten winters would be difficult, according to Reuters.
Many industries are struggling to adapt to the current climate of rising energy costs. We’re keeping an eye on it, but let’s be honest: the coming months and winters will be difficult.
De Croo’s remarks come as Europe grapples with an energy crisis exacerbated by Russia’s war in Ukraine. Russian imports account for approximately 40% of the natural gas used on the continent. Despite this, Russia has reduced gas flows through the critical Nord Stream 1 pipeline to 20% of capacity, citing technical difficulties. European officials claim this is retaliation for sanctions imposed following Russia’s invasion of Ukraine.
According to the Brussels Times, Russia only supplies 6.5% of Belgium’s natural gas needs. However, as the price of energy on the global market rises, Belgian consumers’ bills continue to rise. The unexpected three-day shutdown of the Nord Stream 1 pipeline, which began on August 31, resulted in a nearly 20% one-day increase in benchmark Dutch natural gas futures, setting a new high.
According to The Brussels Times, the wholesale price of electricity in Belgium reached a new record high on Sunday due to rising energy prices. As a result, home energy costs have skyrocketed.
The rest of Europe is bracing for even steeper increases in energy prices. According to a Financial Times report, British homeowners will be paying four times as much for energy by early 2023 as they did between 2018 and 2021. Rising natural-gas costs are expected to be passed on to consumers in Germany, doubling their monthly bills.
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