By David Auffret, Partner Analysis Business Unit

Today’s cost in Italy is reaching the value of 227 euros/MWh (Italy has the highest electricity cost in Europe followed by Greece considering average cost from 1/1/2021). Who would believe this even only 5 months ago when prices were under 70 euros/MWh in Europe? In addition, Winter is coming (not really a surprise) and should not ease the natural gas crisis, which is at the source of the electrical price spike. Cost should stay at an unprecedented high at least until second quarter of 2022. Could we see prices at over 200 euros/MWh in Southern and Eastern Europe (Portugal, Spain, Italy, Croatia, Hungary, Romania, Serbia and Bulgaria) and in particular, in Greece in the coming months?

States are trying to find ways to make this increase
less painful mainly for private or small consumers. Nevertheless, what about
industries/companies with high energy needs? Swift / secure landing and of
course but also, time are needed. Adaptation of needs, cogeneration or even
simply reducing consumption cannot be done in one day.

❶  Yes, it is an obligation for companies to switch towards diversification of energy sources.

❷ Yes, it is an obligation to monitor your consumption and find ways to reduce the consumption. And,

❸ Yes, it is an obligation to find the best electrical supplying formula that matches different customer needs. It is now allabout risk management and being proactive!

However if we want our EU companies to be competitive and go through the switch to sustainable energy, States and Europe have to tame the wave together with company top management drastic decision to manage costs.