Even so, the EU announcement of a plan for emergency action to reform the electricity market to rein in energy prices will come as a relief. Germany and Austria are among the countries breaking the link in the cost of gas from wholesale electricity prices. Currently, gas prices set the minimum cost of energy in the EU’s electricity market. “The sky-rocketing electricity prices are now exposing the limitations of our current electricity market design,” EU Commission president Ursula von der Leyen said. From Brexit to the ending of the era of cheap money, and the likelihood of big increases in interest rates, the big squeeze is on.

Source: Irish Independent August 30, 2022 07:38 UTC