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Tuesday, December 06, 2022

UK working on aid package for energy crisis

Helsinki. Britain’s new prime minister is working on Europe’s biggest energy crisis relief package to date, as European countries scramble to protect homes and businesses from rising bills and reach struggling suppliers.

Liz Truss, who replaced Boris Johnson on Tuesday, plans to freeze household energy bills this winter and next level, which she will pay with loans to government-backed suppliers, the BBC reported. encrypted. and 130 billion pounds ($116 billion and $151 billion).

The BBC said the government was also working on helping businesses, but this is likely to be more complex and reviewed more frequently.

Gas cost in Europe skyrocketed 340% in one year

European governments are promoting a multi-million dollar package to halt the collapse of public services and protect homes in the context of rising energy costs, mainly due to the consequences of the Russian invasion of Ukraine.

Benchmark gas prices in Europe have risen 340 percent in a year, rising 35 percent on Monday, after Russian state-controlled Gazprom announced an indefinite shutdown of the major Nord Stream 1 pipeline.

Europe has accused Russia of militarizing energy supplies in retaliation for Western sanctions imposed on Moscow over Ukraine’s invasion. Russia blames those penalties for causing gas supply problems, which it blames on pipeline failures.

Germany launches measures to protect homes and businesses from rising prices

Germany said on Sunday it would spend at least 65 billion euros to protect customers and businesses from rising inflation, caused mainly by rising energy prices.

Many countries are also providing billions of euros in aid to energy distributors who are exposed to wild price swings, forcing them to make huge guarantees for supplies.

Norwegian energy company Equinor has calculated that these guaranteed payments, known as “margin calls”, are worth at least 1.5 billion euros ($1.5 billion) in Europe, not counting the UK.

Rising prices are forcing energy-intensive industries to cut production, making European economies more vulnerable to recession.

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