Energy intensive industries urge swift action to tackle unprecedented energy crisis

Brussels, 20 October 2021

Ahead of the European Council meeting, industry calls for immediate support to address the skyrocketing energy prices which endanger the post pandemic recovery, coupled with structural measures securing the affordable low carbon energy required to meet the objectives of the EU Green Deal. Gas and electricity prices have been rising exponentially in the last weeks and months, registering 4-to-5-time increases in comparison to last year. The main reasons for this situation are the imbalances in the gas market (which represents the primary short-term element), seasonal factors that have reduced renewable energy production, reduced nuclear energy production and increased carbon costs passed on in electricity prices.

Energy-intensive companies that are most exposed to such price spikes have been forced to react by curtailing and/or temporarily closing plants. Protracted high prices on the spot markets are also being reflected in the futures for the first semester of 2022. Such trend represents a major threat for the full post pandemic recovery.

See full version of the 21 June 2021 press release here