Energy prices are soaring across Europe

Energy prices are soaring across Europe

STORY: Energy consumers in the European Union and United Kingdom are facing record high gas and electricity prices, as their markets continue to suffer from depleted energy stock.

Gas storage sites in the UK and EU are currently at 76% capacity, down from the seasonal average of 90%, according to Gas Infrastructure Europe.

The ongoing shortages are partly blamed on the sudden increase in energy demand around the world, as global economies recover from the COVID-19 pandemic.

In response to the increasing stock shortages, markets across Europe are attempting to limit the demand and conserve stocks by increasing the prices for consumers.

Fears of stock depletion are amplified by the fractured relationship between the end consumers, the UK and EU, and the energy source, Russia.

Russia’s gas giant Gazprom provides 35% of Europe’s total supply, but Europe has claimed the company is not doing enough to ease the region’s shortages and price hikes.

Gazprom, however, insists that it is meeting its contractual commitments.

The rising prices are hitting consumers as the region heads into Winter, with the hope that the cost increase will reduce the risk of depleting stocks later in the season.

Europe’s gas and electricity prices are likely to remain higher than average until their energy stocks improve.

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