Energy prices across Europe have climbed sharply, intensifying pressure on both consumers and businesses, while Greece is emerging as one of the markets most exposed to the surge. Extreme weather conditions, limited energy reserves and structural weaknesses in Europe’s energy system are driving up the cost of electricity and natural gas, undermining competitiveness and raising living expenses.
Concerns over energy security are growing as natural gas storage levels across the European Union fall to worrying levels. In countries that operate gas storage facilities, reserves are well below seasonal norms.
Gas prices surge as speculation accelerates
These conditions have fueled sharp price movements in Europe’s gas market, particularly on the Dutch Title Transfer Facility (TTF), the region’s main gas trading hub. Over a period of roughly 10 days, TTF prices jumped by about 32%. On Jan. 21, February contracts rose to €36.60 per megawatt-hour, up from €27.69 on Jan. 8.
According to reporting from Bloomberg, hedge funds and other speculative players moved into long positions, amplifying the rally. The shift followed increased energy demand for heating caused by extreme weather across Europe. Earlier in January, funds had been selling futures to close positions, before reversing course as conditions tightened.
Low gas inventories have added further momentum to speculative activity, reinforcing upward pressure on prices and pushing overall energy costs higher.
At the start of winter, there was widespread confidence that Europe had secured sufficient gas supplies to cover heating needs. That optimism was based on increased imports of mainly LNG and leftover reserves from previous years, Bloomberg reported. However, geopolitical tensions have since added to concerns over the EU’s energy security.
As of Jan. 19, average gas storage levels across the EU stood below 50%, at 49.12%. In Belgium, reserves were at 39.95%, France at 40.81% and the Netherlands at just 34.76%. Europe remains heavily dependent on third countries for its gas needs, with U.S. LNG playing a central role.
Electricity prices spike, Greece among the most expensive
The surge in gas prices has fed directly into electricity markets. Low temperatures and reduced sunshine have increased reliance on gas-fired power plants to meet electricity demand, while higher consumption for heating has added strain. At the same time, a nuclear power plant in France was taken offline, further tightening supply and pushing prices higher.
Data from Greece’s Regulatory Authority for Energy, Waste and Water (RAAEY) show that on Jan. 21 wholesale electricity prices in Greece reached €146.16/MWh. Prices were even higher in parts of Eastern and Central Europe, including Bulgaria (€159.84), Latvia (€180.21), Poland (€166.69) and Slovakia (€160.14).
By contrast, countries such as Germany, Belgium, France, Spain and Denmark recorded significantly lower power prices, ranging from €79.94 to €117/MWh. Those markets benefit either from milder weather conditions or from energy mixes that include substantial wind power — particularly offshore wind — and nuclear energy.
Greek industry under mounting pressure
High electricity prices are placing Greek industry in an increasingly difficult position, eroding competitiveness and raising production costs. Earlier on Tuesday, Greece’s main business association, SEV, met with Development Minister Takis Theodorikakos, who pledged that a support scheme for industry would be announced in the coming weeks.
However, officials at the Ministry of Environment and Energy, including sources linked to Deputy Minister Nikos Tsafos, have recently signaled a deadlock in negotiations with Brussels over the implementation of such support measures.
High energy costs remain a persistent burden for both European and Greek industry. One EU country after another has introduced emergency measures to shield businesses from soaring prices. In Greece, despite assurances dating back to October — including public statements by Prime Minister Kyriakos Mitsotakis — concrete solutions have yet to materialize, leaving companies and consumers bracing for continued pressure.
Source: ot.gr
