Warning to Europeans of a $395 Billion Increase in Energy Bills in 2022

Greek Energy Minister Kostas Skrekas warned of an increase in energy bills by approximately $395 billion for Europeans next year, due to significant threats stemming from fuel and energy demand, which will keep prices elevated. Skrekas stated that a new mechanism should be created to help protect the most vulnerable citizens and medium-sized companies from rising prices across the European Union. This comes as officials from Hungary and Spain expressed concerns over recent fluctuations in carbon emission markets during a meeting of environment ministers in Brussels. Earlier this year, Greece estimated that Europeans would face an increase of €100 billion this winter alone, according to reports from Bloomberg, which was reviewed by Al Arabiya. The energy crisis in Europe is straining national budgets and has become one of the largest political challenges facing the European Union, contributing to significant inflation at a time when governments are battling the spread of the Omicron virus. Member states have proposed several initiatives, ranging from redesigning how the electricity market operates to setting a cap on the carbon trading market within the bloc. The European Commission emphasized the need to transition to cheaper renewable energy sources. In October, a toolkit was introduced that governments can use to support citizens struggling with rising energy costs. Pressures from global natural gas supply, alongside low inventories, military tension on the Russian-Ukrainian border, and bottlenecks in renewable energy, contributed to rising prices for electricity, gas, and coal. European gas futures rose by about 600% in 2021, while energy futures in Germany for the next year and the French equivalent surged to record levels on Monday.