Soaring winter gas prices prove Europe needs a single energy market

European natural gas prices are approaching €90 per megawatt-hour, reaching their highest exchange level since December 2022. With wholesale electricity prices jumping 57 per cent, households across the continent face steep heating bills as winter begins.

The pain is already visible in national markets. In Latvia, heating costs are climbing as experts warn of further price rises. In Greece, a leading supplier's fixed-rate electricity tariff of 11.5 cents per kilowatt-hour faces uncertainty beyond October, leaving consumers facing potential price spikes.

National governments understandably prefer local measures, such as direct subsidies or national storage targets, to protect their citizens. Direct intervention offers fast, visible relief that national politicians can deliver immediately to their voters.

Yet 27 separate national policies cannot shield Europe from global energy volatility. Fragmented buffers leave individual member states exposed to regional bottlenecks and varying supplier terms.

Europe can build true resilience through a fully integrated single energy market with pooled purchasing power and connected grid infrastructure. Collective buying and shared reserves would give member states leverage and protection that no single national market can achieve alone.

Drafted with AI, edited by the editor.