LONDON/OSLO – Consumers in the European Union and Britain face further gas price spikes this winter as flows of Russian gas via major transit routes are proving too little, too late.
The new Nord Stream 2 pipeline running from Russia to Europe might have eased a tight market. But it has faced more delays as German certification has been suspended, amid opposition to the whole project from the United States and some Europeans.
This year’s power price shock has pushed several European and British energy suppliers out of business, as they cannot always pass on price rises to customers. Britain’s Bulb, with 6 percent domestic market share, was the latest to go bust.
Sky-high electricity costs have forced some power-hungry industries to curtail production and European consumers are now paying more for home heating as winter approaches, adding to wider inflationary pressures.
Benchmark European gas prices this year surged as much as 700 percent by October and British prices climbed 500 percent or so as global economies recovered from the pandemic and sucked in gas, particularly Asia nations, while European stocks are low.
European gas was up more than 300 percent this year on Monday and the British benchmark was up about 250 percent.
Prices eased when President Vladimir Putin said in October Russia would boost gas supplies to record levels, raising hopes that bumper flows would ward off supply shortages.
But flows through major pipelines, such as Yamal which runs to Germany via Belarus and Poland, have not ramped up as much as hoped and there has been no sign of extra capacity booked at auction on other routes, including those via Ukraine.
