United States of EuropeUnited States of Europe
analysisEnergy and climate

National energy fixes leave Europe exposed to winter price surges

As heating tariffs rise and wholesale power spikes, member states are relying on short-term national measures rather than a single European energy market.

Drafted with AI, edited by the editor

Winter is approaching, and European consumers face sharp increases in energy costs. In Greece, wholesale electricity prices have reached €287 per megawatt-hour, putting heavy pressure on households and businesses. In Latvia, district heating provider AS "Rīgas siltums" announced that central heating tariffs in Rīga will increase by 19 per cent from 1 December 2026.

Faced with rising costs, national responses remain fragmented. Governments are relying on temporary and targeted relief alongside a release of 42.6 million barrels of oil from safety reserves. However, authorities remain hesitant to introduce broader reductions to network charges or taxation on power.

National capitals face intense pressure to shield citizens quickly, making short-term targeted interventions politically understandable. Yet relying on separate emergency packages leaves individual member states exposed to recurring market volatility year after year.

Europe can cushion these shocks far more effectively by finishing its single energy market and expanding interconnections. Shared energy security and cross-border resilience offer a permanent buffer that 27 isolated national fixes simply cannot match.

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