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Germany Electricity Benchmark Prices Surge over €500 for the First Time Ever — As Natural Gas Also Reach Record Highs

In 2018 during his speech to the UN General Assembly President Donald Trump lodged a warning to Germany about their country’s reliance on Russian energy.

The German delegation laughed on camera at the remarks.

In June Russia announced it would reduce natural gas flows through a key European pipeline by roughly 40% into Germany.

German politicians called this a political move.

But Russia was not yet finished.

In July, Russia announced it was cutting gas to Germany and Europe by another 20%.

On Tuesday natural gas prices reached a new record high in Europe. And Russia announced up to a 60% price increase in the coming cold weather months.

And now electricity prices hit €500/MWh for 1st time ever.

The electricity prices for 2023 are already at a new record.

Russia is retaliating against Germany for supporting Ukraine. And it’s starting to hurt.

Bloomberg reported:

Europe’s benchmark power price surged above 500 euros ($509) for the first time, ratcheting up pressure on households and businesses as the worst energy crisis in decades looks set to persist well into next year.

German year-ahead electricity rose as much as 11% to 530.50 euros a megawatt-hour on the European Energy Exchange AG. That marks a gain of over 500% in the past year, driven predominantly by Russia’s moves to slash gas supply.

As energy costs continue to soar, industries from glassmakers to metal producers are feeling the pinch. Nyrstar became the latest firm to announce cutbacks on Tuesday, saying it will halt output at its Budel zinc smelter in the Netherlands — one of Europe’s biggest — at the beginning of September.

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