A series of market, geographic and political factors have come together in a perfect storm that shows no signs of abating as the continent enters the autumn season, temperatures gradually drop and heating becomes indispensable.

Analysts already warn that the crisis, aggravated by a mixture of short-term and structural problems, will last and that the worst may be yet to come.

Natural gas prices are skyrocketing: in the Dutch Securities Transfer Service, the main reference in Europe, prices have risen from 16 euros per hour in early January to 75 euros in mid-September, which represents an increase of more than 360% in less than a year.

Although the European Union is gradually reducing its long-standing dependence on fossil fuels - renewables became the bloc's main source of electricity for the first time in 2020 - the change has not been rapid and widespread enough to contain the consequences. of the crisis.

Together, natural gas and coal continue to supply more than 35% of total EU production, with gas accounting for more than a fifth. The energy mix is ​​very different across the block: fossil fuels have a marginal share in Sweden, France and Luxembourg, but account for more than 60% of total production in the Netherlands, Poland, Malta and Cyprus.

As coal, the most polluting fuel, is phased out, many countries are turning to natural gas as a transition resource to serve as a bridge before green alternatives such as wind turbines and solar panels are introduced. In addition, gas is also used for heating and residential cooking, which makes the price increase even more noticeable in final consumer spending.
Citizens of countries like Spain, Italy, France and Poland are now facing unprecedented energy bills that add to the economic woes caused by the pandemic. Popular discontent has put governments on high alert, and ministers are rushing to devise emergency measures, even if they are short-term and only partially effective in cushioning the impact.