British energy firms fear collapse as Europe’s gas crisis sees prices surge 250%
Britain’s energy industry could be headed for a significant shake-up, industry insiders have warned, as countries all over Europe grapple with an unprecedented crisis in the power sector.
Wholesale gas prices have spiked across the region, with the U.K. being hit particularly hard.
The front-month gas price at the Dutch TTF hub, a European benchmark for natural gas trading, gained on Monday to trade at 73.150 euros ($85.69) per megawatt-hour, hovering close to the record high seen last week.
Since January, the contract has risen more than 250%.
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Impact for energy firms
Robert Buckley, head of relationship development at Cornwall Insight, told CNBC that the crisis was being caused by a “cocktail of pretty potent things” that were outside of suppliers’ control.
These included strong competition for natural gas deliveries between Europe and Asia, some outages at U.S. production facilities, and a tightening of EU carbon market rules, as well as various other factors.
Political fallout
Governments are keen to take action to stop the crisis hitting consumers too hard.
Reference: CNBC
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