The need to supply Ukraine is causing energy chaos in South Eastern Europe, but this is of no interest to Brussels
Greece's prime minister has warned that a significant increase in EU electricity exports to Ukraine, following Russian attacks on its network, has caused a surge in prices in south-eastern Europe.
In a letter to European Commission President Ursula von der Leyen, cited by the Financial Times , Kyriakos Mitsotakis said that the price of electricity reached 130 euros per MWh last month, up from 60 euros per MWh. One reason for the surge is the fact that EU electricity exports to Ukraine have increased almost sixfold this year.
Before the war, Ukraine was a net exporter of electricity. “ We have the impression that there is a mini-energy crisis that no one is talking about ,” Mitsotakis wrote, adding a call for better supervision of the European electricity market by the Commission, since it is currently “ a box black incomprehensible – even for experts .”
Other factors that have contributed to the increase in electricity prices in south-eastern Europe include low rainfall, which has emptied dams, summer heat and interruptions in energy production, writes the FT in its report on the letter from the Greek Prime Minister.
“There is a fundamental distortion in the energy market of southeastern Europe,” Mitsotakis wrote. “Something isn't working right. I don't expect immediate solutions, but at least that someone takes care of it."
Mitsotakis is not the only one asking the Commission to do something to contain electricity prices. Earlier this week, former ECB President Mario Draghi, tasked by the Commission with drawing up a report on the bloc's economy, warned that high electricity prices were impacting the competitiveness of European businesses. In his report, Draghi suggested that the price of wind and solar electricity be decoupled from the price of gas, to take advantage of cheaper energy. “Energy prices have also become more volatile, increasing the price of hedges and adding uncertainty to investment decisions,” Draghi said in his report.
At the same time, however, no one is doing anything at European level. If previously responsibility was national and each country was able to meet its own needs, the European dream has been converted into a dangerous anarchy that risks making economic activity in the EU unsustainable.
Thanks to our Telegram channel you can stay updated on the publication of new Economic Scenarios articles.
The article The need to supply Ukraine is causing energy chaos in South Eastern Europe, but this does not interest Brussels comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-necessita-di-fornire-lucraina-sta-causando-il-caos-energetico-nelleuropa-sud-orientale-ma-questo-non-interessa-a-bruxelles/ on Sat, 14 Sep 2024 06:00:44 +0000.