British energy producers are bracing for a huge rise in wholesale prices as governments across Europe rushed to announce a raft of measures to relieve the pressure on households.
It comes amid grim predictions gas prices could surge by as much as 50 percent today after a last-minute decision by Russia’s state-backed energy firm Gazprom to block the reopening of a key pipeline to Europe. [bold, links added]
Nord Stream 1 is the biggest gas link from Russia to Europe, supplying around 55 billion cubic meters per year.
While the UK receives only 4 percent of its gas from Nord Stream 1, other countries such as Germany are much more reliant on the pipeline, meaning its closure is expected to cause prices to spike on international energy markets.
The move has raised fears factories could be forced to adopt a four-day working week to conserve energy.
Germany pledged it would invest £56billion (€65billion) in a bid to ease inflation and high energy prices for customers.
Finnish Prime Minister Sanna Marin proposed an £8.6billion (€10 billion) loan and guarantee package, while Sweden will offer billions in emergency cash to support energy producers.
Italy broke rank last night as Matteo Salvini, the leader of the country’s far-right League party, called for an end to sanctions on Russia.
No date has yet been set for when Nord Stream 1 will be reopened.
Read rest Daily Mail
