Energy: Putin’s plot backfires as UK gas prices plummet as VDL revamps EU market | Science | New
The European Commission has announced that it is working “hard” to meet the crippling costs by launching emergency interventions and longer-term structural reforms. Since Russia’s invasion of Ukraine, energy prices have risen to record highs, with Vladimir Putin repeatedly threatening to cut off gas supplies to Europe. Although the UK imports very little energy from Russia, its presence on the free market makes it vulnerable to price increases in Europe.
However, these prices could soon drop as the European Commission has announced that it is working “hard” on an emergency package to reduce bills.
He also announced the development of a longer-term “structural reform of the electricity market”, while efforts to fill gas storage facilities have exceeded expectations and are currently ahead of schedule.
The EU as a whole is within reach of its 80% gas supply as of October 1, currently at 79.94%.
Over the past year, Putin has tried to manipulate the EU’s dependence on Russian gas by reducing flows, which has sent prices skyrocketing.
Experts have warned that Russia’s invasion of Ukraine was largely funded by EU oil and gas revenues.
As such, EU energy market reform could be a blow to Putin’s war efforts as prices fall.
The overnight wholesale price in the UK by therm fell more than 20% to 447p on Tuesday, while prices for the month ahead contracts fell by 25% to 473p by therm.
While prices are significantly lower than the records Europe faced earlier this year, they are still 12 times higher than early 2021 figures.
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Meanwhile, European countries have scrambled to fill their gas storage facilities before winter amid growing fears that Putin will completely cut off Russian gas supplies.
German Economy Minister Robert Habeck predicted that gas prices in Europe would fall further as soon as Germany, which is Europe’s biggest gas consumer, hits its storage targets.
However, Europe’s plans to replenish energy stocks could be hit hard as Russia has again halted gas flows via the Nord Stream 1 gas pipeline, which connects Russia to Germany via the Baltic Sea.