It’s the topic on everyone’s lips: rising energy prices and the natural gas shortage. While EU leaders are meeting and working on a solution, new figures reveal that gas prices have now risen to almost eight times higher than they were one year ago.
A few weeks ago, Dutch energy companies confirmed that, thanks to rising demand and an increasing shortage of natural gas across Europe, the Netherlands would see energy prices reach near-unaffordable levels for many families. Now, figures reveal that the price increase is happening at a much faster rate than predicted.
On Tuesday evening, prices rose to reach 118 euros per megawatt-hour - almost eight times higher than this time last year. Experts say this significant increase can be attributed to growing concerns about Dutch gas stocks for the coming winter.
The rising price of natural gas over the past few months meant energy companies chose not to refill their gas stocks after the unseasonably cold spring of 2021, which means the country could face a natural gas shortage, and will definitely have to deal with rising gas prices over the coming months.
Companies and businesses across Europe have already admitted that rising energy prices are forcing them to up the prices of their products and services, meanwhile many households have already faced higher energy bills.
Researchers from The Hague Centre for Strategic Studies have warned that action will have to be taken in order to prevent a gas shortage, not only in the Netherlands, but across Europe. On Tuesday, EU leaders met in Slovenia to discuss possible solutions to the current energy crisis.
EU member states are putting pressure on the bloc to come up with a joint solution to the growing issue, meanwhile, several nations have already implemented their own policies in an attempt to combat the crisis. In the Netherlands, the Dutch government has set aside 500 million euros to reduce various energy-related taxes.