European households’ energy consumption likely to soar in 2022 Domestic electricity prices are still among the lowest in the world despite upward pressure

2022-05-08 0 By

Experts said that although the European energy crisis in the short term or there will be a stage of easing, but the possibility of stagflation risk in Europe in the future is still significant.Electricity prices in many European countries have surged to record highs in the recent period, with multiple potential negative impacts on the local and global economies.In addition, higher energy prices have led to broader price inflation that has spilled over into more economies around the world.Experts said that although the European energy crisis in the short term or there will be a stage of easing, but the possibility of stagflation risk in Europe in the future is still significant.But in China, the price of electricity does not seem to be a major issue affecting all industries and people’s lives.High energy prices in Europe, every household energy consumption boom section view, Europe or derived from the results of the clean energy transformation, energy crisis in the context of the global carbon neutral, traditional energy capacity flexibility is reduced, and the new energy supply volatile, vulnerability is stronger interwoven influence the supply side, the supply shortage caused by the energy crisis is more frequent.According to media reports, France and Germany are reducing their nuclear power supply by the end of 2021, while clean new energy sources such as natural gas and wind power have failed to make up the shortfall.Market participants said electricity prices in Europe are likely to continue to rise in the future, with Bank of America estimating that the average energy consumption per household in Europe is likely to rise to 1,850 euros in 2022 on the back of high energy prices in Europe.What happened in Europe will not happen at home, where energy reserves are relatively abundant and electricity prices are still low globally, despite upward pressure.According to the data released by the State Grid, in terms of residential electricity price, in 2019, among 35 OECD countries, China’s residential electricity price was only 40% of the average level of 35 countries, ranking the second from the bottom among 36 countries.In terms of industrial electricity price, China is 70% of the average level of 35 countries, ranking ninth from the bottom among 36 countries.However, with the increase of electricity consumption in recent years, price reform is also imperative, and electricity will gradually return to its commodity nature.In 2021, the National Development and Reform Commission issued “on further deepening the reform of the marketization of coal-fired power generation feed-in tariff notice clear, orderly and let go of all coal-fired power feed-in tariff, coal-fired electricity market transaction price float will extend to fluctuate in principle are not more than 20%, and energy market transaction price should not be restricted to rise 20%.All industrial and commercial users will enter the electricity market, and the price of electricity sold in industrial and commercial catalogues will be cancelled.It is worth noting that the notice points out that low-price power sources should be given priority to ensure the use of electricity for residents and agriculture.To put it simply, we will keep the price of electricity for residents and agriculture stable, so that people can rest assured to keep the way they buy electricity and use it unchanged.(Author: Zhang Xiaochong, Reporter of CfNA)