European Power Prices Soar as Energy Crisis Worsens

Power prices in Europe are breaking records, solidifying the sense of crisis in the region, and spreading fears about possible power shortages as winter looms.

Power prices in Germany, which usually represent the benchmark for the remainder of the continent, leapt above €1,000 per megawatt hour this week before pulling back to €840 per megawatt hour.

Russia's Gazprom announced it would close the Nord Stream 1 gas pipeline for three days this week for maintenance, sparking fears Russia could completely shut off gas to Europe, which is trying to fill its gas stores in preparation for winter.

The Czech Republic said on Monday that it would call an urgent meeting of Europe's energy ministers in Brussels next week as the region seeks solutions.

German Economy Minister Robert Habeck struck a rare optimistic tone on Monday, announcing that the country’s stores were filling up, raising the possibility that his country would not be held hostage to high prices on the market. Germany's gas stocks are approaching 83% full and will breach the 85% mark in September.

Businesses across Europe are concerned they may have to suspend operations over the winter if power runs low, while domestic users could struggle to pay soaring costs. Analysts fear a deep recession could follow if that becomes the situation.

Market commentators familiar with the region say energy prices are more volatile than they have ever seen them, adding to the sense of a deepening crisis.