Jakarta, CNBC Indonesia – The energy crisis that is currently happening in the UK and China in fact also threatens countries in mainland Europe. This is indicated by the increase in demand and the price of natural gas.
Gas prices are currently soaring to record highs in the UK, France, Spain, Germany and Italy. Bills for households and businesses have soared. This could worsen as winter approaches, when the demand for gas for heating is higher.
“We’ve seen big price increases,” Dimitri Vergne, head of the energy team at the European Consumers Organization, told CNN International.
“This is worrying ahead of winter, when gas consumption will certainly increase.”
Meanwhile gas production and distribution to the Blue Continent itself is also currently experiencing disruptions after Russia, which is one of the largest gas suppliers to the region, supplied less natural gas to the market than before the pandemic.
On the other hand, other resources are less available, with the calm summer weather unable to power the many windmills in the North Sea. In addition, many countries have begun to turn away from coal-fired power plants, which also exacerbates this energy crisis.
Economists say this will have far-reaching implications. This spike in energy prices exacerbates concerns about inflation at a difficult time in the recovery from the pandemic.
“As far as people are concerned about higher energy costs, they may tend to hold back on spending,” said Jessica Hinds, Europe economist at Capital Economics.
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