2022: Countries Impacted by Increases in Energy Prices

Electricity in Europe and its price increase is one of the issues that has caused the most commotion in the last two years. The situation that is exacerbated by the war between Ukraine and Russia has reached levels of high impact on ordinary citizens and has made the price of electricity one of the most important issues of 2022.

What is the reason for the increase in the price of electricity?

After a long winter that Europe experienced during 2021, gas consumption increased considerably, which resulted in the use of reserves to meet the demand of the moment, with the security of being able to replenish it later.

Months later, Europe is facing an energy crisis due to the combination of a greater demand for gas, the costs of CO2 emission rights and the armed conflict in which one of the main exporters of this resource finds itself.

What are CO2 emission rights?

The CO2 emission rights are a permit granted by the European Union to each country and, for the most part, are auctioned. This means that their cost can vary constantly, which has resulted in their being at their all-time high.

By having to pay more to produce, this affects the bill received by the common citizen, who is experiencing a disproportionate increase in electricity prices.

Winter and gas: high demand with little supply

One of the situations that generates the greatest concern in this energy crisis is the gas reserves that each country must have for the winter. Replenishing these reserves during the summer is vital to be able to maintain the demand that tends to grow during this time, since gas is vital for heating homes.

Unable to supply these reserves, Europe faces a bigger problem than the cost of the service: supply.

Experts assure that, although the price of electricity is the topic that is currently most discussed, the real problem will arise if a long winter arrives with very low temperatures.

How has the energy crisis impacted European households?

According to a comparison made by BofA Global Research that uses 2020 and 2022, it is estimated that Spain is experiencing a 52% increase in household bills. In the case of Portugal, it is 23%; while Italy reflects 77%.

In the case of the United Kingdom, a 69% increase in household bills is observed. France experiences 52% and Germany 37%.

It can then be seen that the energy crisis is a problem that affects all countries and, although governments have taken some actions to reduce the impact, they are not enough.

Since this is one of the most worrying issues in 2022, the actions taken from now on are decisive to protect or reduce the possible impact on the inhabitants of each country and is, in turn, a motivation to intensify efforts to complete an ecological transition that guarantees the necessary resources for daily life.