Power costs in Germany hit historic highs

Benchmark electricity prices have soared by more than 860% in the last year, according to Bloomberg

German benchmark power prices for next year soared above €800 per megawatt hour on Friday, nearly 10 times higher than the same period last year, Bloomberg reports.

Prices gained as much as 7.6% on Friday to reach €805.15 per megawatt hour on the European Energy Exchange, up 39% this week.

Costs have been smashing records on an almost daily basis as the winter heating period approaches. The rally is being driven by growing concerns over Russian natural gas supplies via the Nord Stream 1 pipeline.

Berlin previously required gas operators to fill underground storage facilities while adhering to a strict schedule, to ensure the country has enough fuel to last the winter. The plan states that storage must be 85% full by October 1, and 95% full by November 1. Experts doubt the goal is achievable.

The spike in energy costs is fueling inflation and hurting households and businesses across Europe. European countries have started introducing drastic measures to limit energy use, such as banning outside lighting for buildings and lowering indoor heating temperatures.

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