Europe’s households face surging gas bills
September 23, 2021 - Benchmark European gas prices have rocketed by more than 400% since September 2020 due to low stock levels, reduced LNG exports from Russia, and high demand in Asia.
In Germany, around 310,000 households face an 11.5 per cent increase to their gas bills, piling an extra €172 to a typical €1,516 annual cost.
Imports cover more than two-thirds of Italy’s energy needs. Rome plans to introduce €3 billion in short-term measures to cut consumer prices.
Spanish consumers have seen a 35 per cent hike in their power bills over the past year. However, Spain’s Socialist-led coalition government said it plans to impose a temporary windfall tax on the excess profits of energy companies. Madrid expects to redirect €2.6 billion to consumers and cap increases in gas prices.
In the UK, wholesale gas prices have surged 250 per cent since January, with six of the countries roughly 40 energy suppliers going bust. France has already announced a €100 subsidy for almost six million low-income households.
However, Norway’s state-controlled energy company, Equinor, will increase its gas supply to Europe, boosting Troll and Oseberg fields production.
Equinor, Europe’s second-largest gas supplier after Russia’s Gazprom, will export an extra two billion cubic metres (bcm) for the year starting October 1. Norway exports about 106 bcm of natural gas to Europe each year.