This record difference, as Bloomberg emphasizes, is due to disruptions in natural gas supplies caused by the war in the Middle East.
The conflict strongly highlights structural differences between European Union countries, which is clearly visible in electricity prices on the Old Continent. A flagship example is the comparison of the situation in Germany and France.
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The Bloomberg agency reminds that France, basing its energy mainly on nuclear energy and renewable sourcesbenefits from relatively stable and cheap supplies. For comparison Germany, which will close its last nuclear reactors in 2023, have to rely more on fossil fuels, which significantly increases energy prices.
Germany's economic situation will only worsen
Yiannis Papamikrouleas, trade director at DEPA Commercial, points out that although the differences between the two largest economies of the European Union have been visible for years, now, with Due to the outbreak of war in the Middle East, Germany's situation will only worsen.
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An additional factor that has a negative impact on electricity prices in Germany is France's policy. Paris decided to introduce restrictions on energy exports.
William Peck, senior European energy analyst at Energy Aspects, quoted by Bloomberg, recalled that In previous springs, the French network operator RTE regularly restricted cross-border energy flows in the east of the country due to network problems.
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— Such restrictions affect domestic prices because surplus energy cannot be sold outside France, and at the same time, prices in neighboring countries such as Germany are rising Peck explained.
