European Power Crisis Getting Severe

Due to the Russia-Ukraine war, power crisis in Ukraine is getting severe day by day, astonishing increment in the household power bills have reminded the 1970 power crisis. Gas prices have been increased by 12 times. European Union is thinking seriously of intervening in energy market. Countries of EU have spent about 280 billion euros to save their people from power expenditure. As per the US paper Fortune, Goldman Sachs warns that during this increasing power crisis the local household power bills may reaches to 2 Trillion dollars. Some restaurants and coffee shops have already seen the 3 times rise in power bills this year. This power crisis of Europe would going to be more deeper than the 1970 oil crisis. According to the Goldman Sachs, by 2023 average european house would be spending 500 euros monthly on their power expenses and this is 3x more than the expense in 2021. This would be the scene when Russia is going to reduce the gas supply but if they cut it to zero then the monthly power bill expenditure may reach to 600 euros per month. The increase in power bills would still be 1.3 trillion or 10% of the entire gdp. British paper The Financial Times writes that, the average price of british household bills is still 30% more than most of the neighbouring countries, relying on natural gas to produce electricity is greatly affecting the consumers. Due to the lack of gas and oil supply from Russia, Europe is facing energy crisis in whole continent. In order to protect the local household consumers and business firms, EU suggests to pave a limit to the prices of Russian gas and rating fuel companies, and many countries have taken individual steps like providing reliefs in terms of tax. Russian attack on Ukraine have changed the energy scenario in Europe. There are not many solutions available for this problem other than government involvement. Electricity prices are tend to rise more in the upcoming winter season. The british household electricity is still 30% more than the second most expensive country in Europe, Italy. UK says that they're less affected by the deduction of Russian gas because they don't have any direct connection from Russia, in some european countries, household bills are expected to rise due to increasing wholesale rates. In terms of Gas, Dutch people have to pay more than any other european nation, Germans comes to second. Both countries relies heavily on Russian resource. UK has the third most household gas bills after these two countries. According to Euro news; due to the increase in energy bills, inflation rate have reached to 8.6%. There aren't any signs of quick exit from this crisis, because Europe is preparing for the complete shutdown of Russian gas supply as per the Russia-Ukraine war. Belgium prime minister states that Europe may face the most difficult 10 winters due to this cut-off. UK has the limit of household energy prices which is used more in their country, but still the prices are getting out of control. Analysts have predicted the yearly rise of 3500 Pounds (4136 Euros) in the electricity bills. According to the research of York University, by Jan 2023 half of the entire houses in UK will cross the threshold of fuel poverty. Italy has announced to impose taxes on energy companies which are making profit due to high fuel prices. Spanish government have also taken the same step. Madrid already had reduced the value added tax on power bills from 21% to 10%, and meanwhile they have reduced the current tax on electricity from 7% to 5%. And like Portugal, Spain have also imposed an year long limit on the gas prices which on average would be less than 50 euros per hour. In order to provide relief to its people, France have offered them one time payment, 100 euros is still way less than Italy and UK. Poland, Romania and Sweden have taken these steps. Sweden has specified 6 billion Swedish Krona (559 million euros) for the most affected households from power bills. As per the British paper I News, European Union is preparing a plan to intervene in this matter, because pressure has been increasing from the member countries to limit these fuel prices. In UK, yearly fuel prices will be raised to 3549 pounds for households by October. All the 27 members of the EU are concerned whether to intervene in fuel markets or not, because lesser gas supply to Europe by Russia have increased the electricity prices. According to the Household Energy Price Index, only Czech Republic is paying more than the UK for electricity in Europe. Stats shows us that, UK is paying 52 PPS (Artificial Currency Purchasing Power Standard) per kilowatt electricity, Italy approx. 46, France 23, Spain 30, Germany 35 and Portugal is paying 33. The cheapest country in Europe for electricity in Europe is Norway, where the rate for it is 12.83%. UK is little bit better in terms of gas prices, UK is paying 15.21 PPS for it,while Bulgaria 24.82. And Germany, Austria, Italy, Portugal, Denmark, Spain, Estonia, Sweden, Czech Republic, Litovia, Greece and Netherlands all are paying more than UK. Unlike of other countries, UK doesn't rely on Russia for the gas supply. EU countries have spent 280 billion euros to save their public of excessive gas prices last year. As compare to the starting days of 2021, the gas prices have increased by 12 times in Europe as well as electricity prices are creating new record everyday. Germany is ready to think on European price limit of gas. In America, due to the increased inflation, the rate of mortgage houses have raised for the first time since 2008 crisis, the rate mortgage houses for 30 years was 5.89% till last week now it is 6.02%. Last year the rate was 2.86% at the same time.

                                                                                                                  

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