Europe is set to see higher utility costs, according to Bloomberg
Ahead of the start of the heating season in Europe, energy prices are rising rapidly, which could lead to another increase in utility bills for households.
The price of natural gas for the winter season is already more than double last year’s level, while the cost of electricity in Germany has risen by about 50%.
One of the reasons for the sharp rise in energy prices is the reduction in fuel supplies from the Middle East due to the blockade of the Strait of Hormuz.
About one-fifth of the world’s liquefied natural gas (LNG) flows through this strait. Amid supply disruptions, Asian importers began actively buying up LNG shipments intended for the European market, offering suppliers higher prices.
As a result, it has become more difficult for Europe to replenish its underground gas storage facilities. Their reserves have fallen to the lowest level ever recorded for this time of year.
Rising wholesale energy prices are already putting additional pressure on consumers and may contribute to accelerating inflation.
In particular, the United Kingdom expects utility bills to rise to a three-year high starting in October.
At the same time, Europe is partially protected by the expansion of solar and other renewable energy sources. However, power grids have not yet been able to adapt to the intermittency of “green” generation.
Analysts do not expect low gas storage levels to lead to a physical shortage of the resource. At the same time, European countries will have to spend significantly more on gas purchases to build up sufficient reserves before winter.
There are about six weeks left until the start of the heating season. European governments will have to choose between providing financial support to households and risking further public discontent over high utility rates.
This is according to Bloomberg.
Ofwat, the water regulator for England and Wales, is considering proposals that would allow suppliers to factor water shortages into consumer bills during periods of drought. The goal of these changes is to reduce water consumption, according to The Guardian World.
The National Commission for State Regulation in the Energy and Utilities Sectors (NKREKP) has approved a decision to raise the electricity transmission tariff. Effective August 1, 2026, the rate will increase by 25% to 928.45 UAH per megawatt-hour, excluding VAT.
