High Energy Prices Likely in Europe this WinterReading Time: < 1 minutes
Vice President of the Hungarian Energy and Utilities Regulatory Authority, Pál Ságvári, expects high gas and energy prices to stay high over the next few months. He compared the situation to a “perfect storm,” given that in recent months there were temporary supply disruptions on both the Russian and Norwegian supply sides, while in the US, a hurricane has impeded LNG exports. Meanwhile, there is a political debate between Russia’s Gazprom and the European Union over the commissioning of the Nord Stream 2 natural gas pipeline, a dispute which has created instability in the gas market.
According to him, the rise of energy demand in the post-pandemic period in Europe has collided with the supply disruption, while demand in Asia is even higher than in Europe, meaning it is luring away LNG shipments. However, as Ságvári underlined, Hungary’s households, consumers and society in general are protected from skyrocketing energy prices due to Hungary’s state-sanctioned regulated prices.
As for the EU’s “Fit for 55 Package,” Ságvári warned that the Emissions Trading System could have a negative effect on the competitiveness of the EU, if non-European countries do not make their companies pay for CO2 emissions.