As far as European industries are concerned, they will face a 65% rise in energy costs
One nightmare scenario for European economies in case Russia permanently interrupt the natural gas supply presents Goldman Sachs, noting that electricity and gas bills for households will soar to 500 euros per month.
Specifically, it provides energy costs jump by around 65% compared to today, when the price of a megawatt hour is already at unimaginable heights, exceeding 170 euros.
In this case, an average European household that consumes about 3 megawatt hours of electricity and 15 megawatt hours of natural gas per year, will have to pay in one year about 5,650 euros for electricity and natural gas, i.e. 470-500 euros per month.
According to the investment giant, this cost will be increased by 300% (!!) compared to the summer of 2020.
Regarding the European industriesthey will be faced with a 65% increase in energy costs if the supply of Russian gas is interrupted.
As Goldman Sachs emphasizes, the further launch of the already expensive energy will squeeze the profit margins of European energy industries, as it is e.g. the chemical industries, the glass, paper, steel, cement, ceramics industries, while it is not excluded that some industries that consume a large volume of natural gas may have shortages and be forced to reduce their production.
Comparing today with 2020, Goldman Sachs calculates that tthe total cost to industries has increased by almost 200%according to data from the regulator ARERA.
Yes, the Germany and Italy, which are heavily dependent on Russian gas they will face a serious problem of lack of energy and it is very likely that in the event that Moscow turns off the tap about 65% to 80% of their industrial production will be affected.
In Germany in particular, a complete shutdown will have long-term and substantial consequences for the country’s energy security. It estimates that the largest European economy will face a shortage of about 20 billion cubic meters of gas annually, which will affect about 65% of its industries, assuming of course that no measures are taken to reduce consumption.
View the news feed and get the latest news.
