According to a Citigroup report by Bloomberg, assuming that the current prices of energy sources in forward markets remain stable, the total energy bill in the region will amount to approximately $ 1 trillion this year. and will be the highest in a decade. While previous spikes in energy bills have been driven by rising oil prices, the current spike is driven by rising costs for heating to provide energy to households, transport and industry.
“This time around, gas and electricity are becoming prohibitively expensive in Europe. Consumers and industry across the region will likely have to make tough energy consumption choices,” Citigroup analysts note.
Europe finds itself in an energy crisis fueled by the lowest gas stocks in at least a decade. Last year, gas prices increased by over 250 percent. due to the reduction of supplies by Russia, and the production of renewable energy is limited by little windy weather.
According to Citigroup’s estimates, gas supplies about 25 percent. Europe’s energy needs, compared with just around 10% of in Asia. Its use as a fuel in the energy sector also increases the rates for electricity. However, as Bloomberg adds, consumers will be helped by governments that in a number of countries are preparing solutions to reduce the severity of energy price increases.