The #Electrification Alliance believes electrification is the future of #EU’s energy system. As we see an unprecedented increase in electricity prices, we would like to share insights and offer recommendations to overcome this situation.
The unprecedented increase in wholesale electricity prices is driven primarily by very high global gas prices, bouncing back as global economies recover after COVID-19, but also impacted by global supply constraints. Europe still produces over 20% of its electricity from gas-fired power stations1, so higher gas prices feed directly into our electricity bills.
The recent rise in carbon prices, that coal and gas-fired power stations pay, is also a factor but account for less than a fifth of the recent increase in electricity prices, as outlined in this graph by EMBER and stressed by you, Mr Executive Vice-President, in the European Parliament during the first debate around the “Fit for 55” package.
To overcome this situation, the Electrification Alliance recommends the following measures in a joint letter addressed to European Commission Vice-president Timmermans, Energy Commissioner Kadri Simson and the Chair of European Parliament's ITRE Committee, Cristian Busoi.
The Electrification Alliance is an alliance of 10 European associations: