European gas prices have already risen substantially this year but one expert has predicted that costs could double or even triple in some countries by the end of the year.
Expert Marcell Göttert from Agenda Austria, a research institute based in Vienna, has claimed that Austria, which is heavily reliant on Russian energy exports like natural gas, could see costs double by the end of the year, while others have stated Germany, which is also reliant on Russian energy exports, could see costs triple.
According to Göttert, energy prices are unlikely to begin to relax or decrease until at least 2024, while the cost of gas for consumers has already increased by around 60 per cent, the Austrian newspaper Kronen Zeitung reports.
Earlier this week, the German government sounded the alarm over gas supplies, with Economics and Climate Action Minister Robert Habeck announcing that the country would move to the second level of emergency powers to help fill gas storage prior to the winter.
“We are in a gas crisis. Gas is now a scarce commodity. The prices are already high and we have to be prepared for further increases,” Minister Habeck said.
“We must not delude ourselves, cutting gas supplies is an economic attack on us by [Russian President Vladimir] Putin,” Habeck said and added, “It is clearly Putin’s strategy to create insecurity, drive up prices and divide us as a society.”
Earlier this week Germany announced it would be forced to rely more on coal power for its electricity supply due to reductions in the supply of natural gas from Russia, which was announced by Minister Habeck, who is himself a member of the German Green Party.
“To reduce gas consumption, less gas must be used to generate electricity. Coal-fired power plants will have to be used more instead,” Habeck said and added, “That’s bitter, but it’s simply necessary in this situation to lower gas usage,” in reference to Germany’s prior commitment to phase out coal in order to meet climate change goals.