A Stalingrad for Natural Gas

European natural gas hub spot price has surpassed $900 per thousand cubic meters with the psychologically important threshold of $1 per cubic meter not far off. This is an astronomically high price that is likely to bankrupt a lot of European energy companies while causing their customers to die of exposure this winter.

Just in the UK, where around 10 thousand people freeze to death during a normal winter with normal prices, so far PfP Energy, MoneyPlus Energy, People’s Energy and Utility Point have kissed the world good-bye, their customers getting picked up by the government regulator Ofgem. Acting wisely, Ofgem raised the annual price cap for a typical household by £139 to £1,277. Just to make things even more interesting, the underwater cable providing electricity to the UK from France just failed, knocking 1GW out of the 2GW link.

What’s behind all of this chaos and mayhem? Call it the wages of stupidity.

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