Gas prices have created a significant impact on the energy firms for the UK residents. It can create a knock-on effect in the food industry and the supply chain industry. As per the report, the consumers of Europe are facing a steep rise in the energy bill. It has resulted in difficulty for the Europeans to move to renewable energy. The gas crisis in Europe is taking bad shape.
The natural gas crunch is rapidly becoming a fertiliser crisis in Europe – which sounds dull until you realise a shortage of fertiliser means farms will struggle to grow as much food next year.
It’s not an exaggeration to say food supplies are at risk pic.twitter.com/46haMHQ7O9
— David Sheppard (@OilSheppard) September 17, 2021
How Are Different Countries Responding To It?
The natural gas wholesale prices across Europe are shooting up, and many stronger economies are now behaving abnormally due to this. For example, the energy prices in Spain are closely tied to the wholesale gas market. Therefore, the cost per megawatt-hour prices has increased a lot in Spain. The gas crisis in Europe is making the situation worse for its citizens.
Europe starts rationing natural gas to ensure supplies.
Keep in mind, the cause of this crisis is wind failure.
Green = Disaster.https://t.co/ENWWYbcIQD
— Steve Milloy (@JunkScience) September 23, 2021
It reduces the extraordinary profits of many companies of different countries may get slashed down. Therefore, most of the world’s countries are now slashing down the electricity bill to combat this scenario. For example, the Spanish government has decided to reduce the electricity bill by 20%.
Italy’s gas prices have hiked by 40%, so Russian exports are also affected. In addition, many industries and energy bills are affected due to it. It will also result in an increase in household prices all over the European nations.