German, French Power Prices Hit Records as Gas Squeeze Tightens
2022.08.25 13:05
(Bloomberg) — The cost of powering Germany and France jumped to fresh records, piling greater pressure on consumers and industry who already face eye-watering bills.
German power prices for next year soared 13% to 725 euros ($726) a megawatt-hour. French power for the same period jumped 12% to 880 euros, or about 10 times the level it was a year ago.
The astronomical rise is being driven by tighter gas supplies from Russia, which are pushing up the price of the gas that fuels the continent’s power stations. Supplies have been limited even more as Russia said it would temporarily cut flows through the Nord Stream pipeline from Aug. 31, triggering fears they may not resume.
A day before the UK regulator is set to announce an increase in household bills to a level about three times last winter’s, pressure is mounting on European leaders to ease the pain facing their citizens.
©2022 Bloomberg L.P.
