European electricity prices forecast to skyrocket

The dramatic rise in energy costs will continue, with a tenfold increase in electricity prices in 2023, French PM warns

Energy prices are expected to spike at the start of 2023, French Prime Minister Elisabeth Borne warned on Wednesday, noting that the costs of electricity on the European market could be ten times higher than they were last year.

“Energy prices are rising. As for gas, the market has set the price for 2023 at five times the price of 2021,” the PM told a press conference.

Earlier, French media reported that the wholesale price of electricity in France will hit record highs next year, exceeding €1,000 per megawatt-hour, which is ten times higher from a year ago.

On Wednesday, Borne announced new government steps to combat rising gas and electricity prices in France. The government has pledged to keep gas and electricity price increases at 15% in 2023, a move that is expected to cost the French budget €16 billion.

Governments across Europe have already plowed hundreds of billions of euros into tax cuts, handouts and subsidies to tackle the energy crisis that is driving up inflation, forcing industries to shut production and hiking utility bills ahead of winter.

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