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7 Nov, 2022 10:32

EU and UK energy bills smash record high – Bloomberg

Financial supports allocated by governments have reportedly failed to shield households from the crisis
EU and UK energy bills smash record high – Bloomberg

The average retail gas price across the EU and the UK doubled in October compared to the previous month, when it amounted to €0.18 per kilowatt-hour, Bloomberg reported on Monday, citing data from energy consultancy VaasaETT.

Electricity costs for consumers have reportedly soared 67% to €0.36 per kilowatt-hour.

The surge occurred despite EU governments’ latest attempts to protect households against spiraling energy prices by providing billions in subsidies. EU leaders have pledged more than €550 billion over the past year to help businesses and households tackle the energy crisis. 

According to Philip Lewis, chief executive officer at VaasaETT, it’s likely household bills would have been even higher if it were not for the financial aid.

On a monthly basis, the average unit rate for electricity reportedly increased 3.4% in October, while that for gas grew by 2.5%. The biggest monthly gains were recorded in Dublin, Ireland, where power rates climbed 44%, while the average gas price in Rome surged 97%.

“If we were essentially to have the crisis more or less lasting for another whole year, or more than a year, that cost, of those measures for these governments, is going to be enormous,” Lewis said, as quoted by media.

“Eventually customers will forget that those prices are not real prices – they will take them as the norm and then it becomes essentially impossible to remove them,” he added. 

The EU and Britain are facing a sharp rise in energy prices and record inflation amid anti-Russia sanctions and a policy of abandoning Russian fuel. The situation is expected to lead to energy rationing and shortages across Western Europe.

For more stories on economy & finance visit RT's business section

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