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Europe Energy Crunch to Linger as Power Prices Hit Records

  • Electricity prices hit an all-time high in Germany and France
  • Freezing weather is forcing utilities to burn fossil fuels
Updated on

Europe’s energy crunch is set to last as electricity prices climbed to fresh records, fueling inflation and raising bills for millions of households and industries across the continent. 

Power prices for delivery next year surged over 15% in Germany and almost 14% in France by Wednesday’s market close as freezing weather has forced European utilities to burn more gas, coal and even oil to keep the lights on. High prices this month are spilling into futures contracts for the following years, a sign that the crunch could last longer than many expected.