Here is the chart for Garman 1 year forward electricity contracts. It has hit €340 per MWh
Worse the forward contracts for 2024 and 2025 have also soared. Normally businesses secure their future energy needs with forward contracts, but at these prices their businesses are not viable.
The French 1year forward electricity contract has soard to €420 per MWh, though their problem is down to EdF rather than gas prices.
Basically, if this continues there will be a lot of bankruptcies.
One way forward is to ditch the green commitments and burn coal. However the EU imposes severe fines on companies with high CO2 emissions, and burning coal produces a lot of CO2.
That looks scary - recession coming up later this year?
I don't see how they can avoid a recession, even if they burn coal and abandon carbon pricing.
What are the chances of the EU abandoning carbon pricing?