Uncertainty in the market for electricity and gas brakes for industry

Photo-illustration: Pixabay

The situation on the energy market does not give much cause for optimism. The first working week of this year also brought higher prices – a barrel of oil reached 80 dollars again, coal rose by more than 7% in a day, and gas and electricity kept last year’s high level. This creates the greatest uncertainty in Europe, where some companies are already announcing layoffs and plant closures. In our country, businessmen breathe easier with a six-month limit on the price of electricity, but they are also looking for a long-term solution.

Since October, the steel plant in the Netherlands, due to expensive gas and electricity, has stopped production, melting only imported aluminum. Losses are piling up, so they are afraid that they will die to stop the machines.

“That means there is less work for 325 employees. We still hope that we will be able to continue working, but the mood is a bit depressed now, because 120 colleagues will be fired “, says the worker of the steel plant” Al Del “.

The financial director of that company says that the reserves will dry up as well.

“We can continue like this for a while, but we all hope that prices will fall to a normal level,” he says.

The most affected are the industries that consume large amounts of energy – ferrous and non-ferrous metallurgy, petrochemicals, car manufacturers. Transport has also become more expensive and everything is already reflected in the prices of their final products.

“We all have reason to fear, especially because this is only happening in Europe. We have a rise in energy prices all over the world, but not at this level. This is, let me say, now a European problem and now European industry is becoming uncompetitive on the world market, which Europe must somehow solve, “says the president of the Association of Managers of Serbia, Dragoljub Damljanovic.

“It simply came to our notice then. The consequences on the economy are manifested primarily through high inflation, which will certainly last “, says Ivan Nikolić from the Institute of Economics.

For our economy, the situation is somewhat more certain – on the recommendation of the Government, EPS limited the prices of electricity for the economy to 6 months.

“I think that the Serbian government, like other governments, will try in some administrative ways to mitigate that blow in order to maintain the competitiveness of that industry.” However, that cannot last long, this will never return, the prices will not be the same as they have never been before, so we must think strategically “, says Dragoljub Daljanović.

The whole of Europe is looking for long-term solutions, because the energy crisis is only deepening. Some earlier forecasts by international financial institutions indicate that record high energy and energy prices will last at least until the end of spring.

Source: RTS

Source: Energetski portal Srbije by www.energetskiportal.rs.

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