Europe's Governments Set to Spend Billions as Energy Crisis Deepens

Europe is being hit with very unusual, recovery-related energy increases. This is causing worry that some families will not be able to remain warm this winter.

Politicians are also concerned about the effects on elections and the possibility that price increases will cause inflation to increase.

The higher price of natural gas is largely due to an increase in demand in Asia and low supplies in Europe. This has caused a 280 percent increase in the price of natural gas. Electricity prices are also increasing because Europe produces much of its electricity from natural gas.

The Russian government has decided¹ not to increase gas supplies that flow through Ukrainian pipelines³, worsening the situation. European neighbors are accusing Russia of extortion, saying Russia is using the situation to get approval of the newly completed Nord Stream 2 gas pipeline² that does not flow through the Ukraine.

The International Energy Agency and United States officials have called on Russia to increase gas exports.

Amos Hochstein is a senior adviser⁴ for energy security at the U.S. Department of State.

"The reality is there are pipelines with enough capacity through Ukraine to supply Europe. Russia has consistently said it has enough gas supply to be able to do so, so if that is true, then they should, and they should do it quickly through Ukraine," he told Bloomberg TV.

Europe struggles

Some members of the European Parliament want the European Commission to examine Russia's majority state-owned energy company Gazprom. Lawmakers believe it is possible that Gazprom is using the market for its advantage and breaking EU competition rules.

In the not-too-distant future, Europe could see factories and businesses reduce production, which has caused warnings about food shortages.

British ministers have called emergency talks with industry representatives on the problem of increasing gas and electricity prices. Seven natural gas suppliers have gone bankrupt in the past six weeks from a gas price increase of 70 percent in August. Three others may face bankruptcy⁵ as well. That is because suppliers cannot pass the full price increase on to customers due to government restrictions⁶ on energy prices.

British households will see prices increase several hundreds of dollars this winter. British officials are considering giving some of Britain's largest energy companies state-backed loans to help ease the difficulties.

Other officials are not ready to use taxpayers⁷' money. Britain's business official, Kwasi Kwarteng, told a group in parliament that the energy industry must first "look to itself" for answers.

State intervention⁸

Other European governments are considering ways to intervene in energy markets to keep lights on and homes warm. They are considering billions of dollars of aid.

In Spain and Portugal, average energy prices are three times what they were 6 months ago. Spain's government plans to cut taxes on energy bills.

Norway offered some relief by saying that its state-owned energy company will increase production of natural gas in the North Sea.

In Italy, ministers have warned of electricity prices jumping by 40 percent in the last three months of 2021. They are creating emergency plans to deal with the increases. Some Italian officials say $5.27 billion is being considered to aid families. Italy imports two-thirds of its energy needs.

Words in This Story

extortion – n. the crime of getting money from someone by the use of force or threats

reality – n. the true situation that exists: the real situation

capacity – n. the amount of something that can be produced or managed by a factory or company

consistent – adj. always acting⁹ or behaving in the same way

bankrupt – adj. unable to pay debts

1 decided   

adj.决定了的，坚决的；明显的，明确的

参考例句：

• This gave them a decided advantage over their opponents.这使他们比对手具有明显的优势。
• There is a decided difference between British and Chinese way of greeting.英国人和中国人打招呼的方式有很明显的区别。

2 pipeline   

n.管道，管线

参考例句：

• The pipeline supplies Jordan with 15 per cent of its crude oil.该管道供给约旦15%的原油。
• A single pipeline serves all the houses with water.一条单管路给所有的房子供水。

3 pipelines   

管道( pipeline的名词复数 )； 输油管道； 在考虑（或规划、准备） 中； 在酿中

参考例句：

• The oil is carried to the oil refinery by pipelines. 石油通过输油管输送到炼油厂。
• The oil carried in pipelines. 石油用管道输送。

4 adviser   

n.劝告者，顾问

参考例句：

• They employed me as an adviser.他们聘请我当顾问。
• Our department has engaged a foreign teacher as phonetic adviser.我们系已经聘请了一位外籍老师作为语音顾问。

5 bankruptcy   

n.破产；无偿付能力

参考例句：

• You will have to pull in if you want to escape bankruptcy.如果你想避免破产，就必须节省开支。
• His firm is just on thin ice of bankruptcy.他的商号正面临破产的危险。

6 restrictions   

约束( restriction的名词复数 )； 管制； 制约因素； 带限制性的条件（或规则）

参考例句：

• I found the restrictions irksome. 我对那些限制感到很烦。
• a snaggle of restrictions 杂乱无章的种种限制

7 taxpayers   

纳税人，纳税的机构( taxpayer的名词复数 )

参考例句：

• Finance for education comes from taxpayers. 教育经费来自纳税人。
• She was declaiming against the waste of the taxpayers' money. 她慷慨陈词猛烈抨击对纳税人金钱的浪费。

8 intervention   

n.介入，干涉，干预

参考例句：

• The government's intervention in this dispute will not help.政府对这场争论的干预不会起作用。
• Many people felt he would be hostile to the idea of foreign intervention.许多人觉得他会反对外来干预。

9 acting   

n.演戏，行为，假装；adj.代理的，临时的，演出用的

参考例句：

• Ignore her,she's just acting.别理她，她只是假装的。
• During the seventies,her acting career was in eclipse.在七十年代，她的表演生涯黯然失色。