Europe Enters New Energy Crisis: Czech Minister Warns of Price Surge

The European energy crisis is intensifying, with central Europe set to be hit hardest, according to Karel Havlíček, Czech minister of industry and trade. He expects energy costs to rise in the coming months despite current prices not being as high for consumers.

Havlíček pointed out that wholesale natural gas prices have reached their highest level since December 2022 at the Title Transfer Facility (TTF) virtual trading hub in the Netherlands, exceeding EUR 84 per megawatt-hour. Electricity prices are also rising sharply alongside gas.

The minister emphasized the need for action and stabilizing measures to curb the operation of the emissions allowance system, particularly targeting the planned ETS 2 system that extends the allowance system to further sectors from 2028. He wants to postpone this plan and limit the current ETS 1 allowance system's impact on industrial sectors.

Havlíček also noted that energy prices in Europe are significantly higher than in other parts of the world, citing the marginal source system and the shutdown of German nuclear power plants as contributing factors. He warned that it will take nearly two decades to rectify past mistakes, including Europe's loss of independence due to rushed changes.