The Strategist

EU urges to help residents because of rising energy prices

10/01/2021 - 07:22

High energy prices are putting serious pressure on the purchasing power of EU residents, EU leaders should consider how to alleviate the situation, Barend Leyts, spokesman for the European Council President, told reporters.

In the medium and long term, the EU needs to continue to significantly increase investment in innovation and clean energy, Leyts said.

"The current situation once again underlines the importance of defining an ambitious and realistic path towards achieving our collective climate goals for 2030 and 2050," he stressed.

European Council President Charles Michel has put rising energy prices on the agenda of the 21-22 October summit of European Union heads of state, Leyts noted.

The cost of gas futures in Europe reached a new record high on Thursday, exceeding $1,150 per thousand cubic metres. As noted by experts, the rise in gas futures prices in Europe is associated with several factors: the low level of occupancy of European underground gas storage facilities (UGS), supply constraints by major suppliers and strong demand for LNG in Asia.

Wholesale electricity prices in Europe rose to new highs in September. However, the impact of these prices on energy costs for consumers in different EU countries is not the same because of different pricing schemes.