Europe faces a harsh winter: Warning on energy prices and a 13-year anti-record
The European Union region will face severe trials and crisis pressures in the energy market during the upcoming winter season. Annis-Kaisa Itkonen, an official spokesperson for the European Commission, spoke to journalists in Brussels and openly revealed the true scale of the economic difficulties expected in Europe.
The official emphasized that excessively high fuel and electricity prices across the continent are inevitably becoming a heavy burden for households and industrial sectors.
"It will be an extremely harsh winter in terms of prices"
The European Commission official assessed the main risks and challenges for the autumn-winter season as follows:
Two-pronged pressure: European consumers and the manufacturing sector will simultaneously face intense financial pressure due to cold temperatures and the high cost of natural gas and electricity;
Need for coordination: Acknowledging that the situation is fraught with high risks, Brussels has demanded maximum solidarity and preparedness from all member states to get through the heating season unscathed.
Strategic reserves deployed: 100 million barrels of fuel
Emergency financial decisions have been adopted to cushion market price spikes and protect purchasing power:
EU and G7 agreement: The EU leadership, together with the Group of Seven countries, fully endorsed the initiative to release 50 million barrels of crude oil and 50 million barrels of diesel fuel from strategic reserves onto the market;
Goal — stability: This step is aimed at somewhat balancing fuel prices for European citizens and business entities.
13-year anti-record: Gas storages only 63 percent full
Experts' greatest concern remains the situation regarding Europe's underground gas storage facilities:
Historically low indicator: As of October, underground gas storage facilities across the European Union are filled to only 63 percent, which is the lowest figure in the past 13 years;
Supply deficit: In the European region, having abandoned Russian natural gas, liquefied natural gas (LNG) and alternative supply corridors are facing difficulties in fully and affordably covering seasonal needs.
If the winter turns out colder than expected, limited gas volumes and rising tariffs could deal a severe blow not only to the utilities sector but also to Europe's global economic competitiveness.
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