The consumers and energy firms in the UK are affected by the gas crisis in Europe due to the raised prices. As the gas prices increased, it had an immense effect on consumers and residents as well. There is a rise in electricity bills, and the government is not helping. The Europeans are facing difficulty moving to renewable energy as they have no funding. During these times, many different countries also showed different crises which they are facing.
In Spain, last year, the consumer cost of electricity increased by 35%. In August alone, the electricity bill was increased by 8%.
One of the residents in central Madrid, who runs his newspaper kiosk, informed that in the past, he used to pay €40 (£35) per month. But now, after the crisis, he is paying €60.
People have changed their lifestyles after the rise in bills. Residents now use the appliances in day time only because it’s cheaper. They turn off the lights during the day.
This month, a measure to bring the bills back to their prices was unveiled by the government of Socialist Prime Minister – Pedro Sanchez. The government suggested, the prices can be bought back by cutting taxes and by reducing extra profits which were made by energy companies temporarily. After this decision was made, the whole industry criticized the government’s decision. The government has clarified that the tax reduction formula was not implied in the renewable energy production sector, and they will be exempted. The government stated that by the end of this year, they had to reduce the electricity bills by 20%.
In Central Rome, a Rome shop owner Michele Fiorita while having some fresh air outside his shop stated “ the outlook is not very rosy”. He stated that his energy bills have increased by about 15%. And he is afraid that in the future the prices may rise by around 40% in a few months.
The sudden price increase will affect the behavior of Italian families. They now have to save electricity bills as well as they have to calculate their monthly expenses.
To cut the rise in prices for households, the Italian government has spent around €1.2bn, and they have pledged to spend another €3bn in coming months.
Mario Draghi the Prime Minister stated that in the next few months, the system costs will be removed from bills of electricity and gas. Some tariffs will be added to bills in order to help the transitions to renewable energies.
Italy needs to expand its energy sources. It needs to move towards green energy instead of depending on only gas energy. Michele thinks for the long term this is the only way to reduce the cost.
What are the potential solutions of gas crisis in Europe?
One of the biggest producers of natural gas and oil is Norway in Europe. But, Norway uses very little for its own needs.
By burning wastes and fossil fuels, only 1.4% of electricity is made. By using wind power only 5.8% is produced and by using hydroelectric power, 92.9% of electricity is produced.
To support the increased demand of Europe and the UK, Equinor – Norway energy company has decided to increase gas export by 2bn cubic meters for the next year. After Russia’s Gazprom, Equinor is the second-largest gas supplier in Europe.
As compared to other European countries, the electricity bills are not that much increased in Norway. So, Norwegians are not increasing the energy prices and are considered to be safe from the gas crisis in Europe.
Magnus, a 26 years old resident living in a small studio apartment with his girlfriend stated, that they recently paid 750 NOK (£63) for only warm water and energy but, in Oslo, the prices are quite low.
In Bergen, some couples are moving to bigger flats, and they expect their bills will also go up. The electricity is more expensive where fewer people are living. So many people think to use solar panels instead of electricity to reduce their expenses.
Norway will export electricity to the UK by using a North Sea Link from 1st October 2021. It’s an underwater electric cable with high voltage. It connects two lower grids to send and receive electricity.
