The price of electricity is putting massive strain on European households 

European households have had a rough 2022. Inflation is soaring and interest rates are going up, something that in turn leads to many families and the like having a very small buffer to move around on each month. When one combines this with the fact that the price of electricity has soared since the invasion of Ukraine, the winter has already started to look very grim for many. 

The price of energy is one of the key factors in the current rampant inflation that can be seen in many European countries. Many households face the harsh reality of their energy bill being up several thousand percent despite overall usage being down. Due to this many Europeans are struggling to cope with the new financial landscape that they’ve found themselves in. In this text we’re going to share some insights into how the energy prices are affecting European countries and consumers.

Consumers are scrambling to find the best deals 

Even if electricity is traded on an open market between different nations, there is some money that can be saved by turning to a cheaper company. Due to this there are now several companies focused on providing information while also trying to attract customers through the use of lower prices overall. Businesses like the Swedish company Elbyte have begun operations offering suggestions to consumers about what might be the best way forward, and similar services can be found in other countries. 

For those that weren’t fortunate enough to decide to sign up for an energy agreement where the price is fixed for a couple of years, it might be too late to do so now. By signing up for an agreement with a fixed price now the consumer might be left out to dry if the markets come back from their record setting highs. 

Some countries are affected more than others 

Some countries are affected more by the energy prices. Countries with harsh winters such as the nordics and parts of central europe need more energy to ensure that houses are livable, something that in turn leads to countries like portugal not feeling the impact in the same manner as, for example, Finland. 

The price of energy affects all part of society  

The price of energy is something that can be felt throughout society, and not just for the households. Energy-intensive businesses such as bakeries and the like can have a hard time turning a profit when the price of electricity is as high as it is currently.

A concrete example of this can be the price of food in supermarkets. When the war in Ukraine started the price of many commodities associated with food skyrocketed, something that led to the price of food rising. But the price of things like grain and other commodities have come down from their record breaking highs and are now often trading at lower price points than what they were before the invasion. But the supermarkets still have to keep the lights and massive freezers on, something that can be incredibly energy intensive. 

Michael Caine

Michael Caine is the Owner of Amir Articles and also the founder of ANO Digital (Most Powerful Online Content Creator Company), from the USA, studied MBA in 2012, love to play games and write content in different categories.

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