Austrian Chancellor Karl Nehammer urged an end to the market frenzy in energy, insisting that prices should be steered by European action rather than external players. Reuters describes his stance as a push to cap how energy costs are set in the EU.
Nehammer called for a measured approach to electricity pricing across the European Union and said he would persuade countries that had previously questioned the plan. He stressed the need for a coordinated European response that can deliver real relief without delay.
He vowed to pursue a sustainable solution model that can be implemented quickly and said negotiations with colleagues in the EU Council would continue in the near term. He did not spell out every proposal but emphasized that decisive steps were needed to curb price spikes.
“Something has to happen soon. The market will not self-correct in its current form, so all 27 member states must come together to stop the price surge as quickly as possible,” he stated.
The plan he described would separate electricity tariffs from gas costs and align them with actual production costs. He argued that the electricity exchange price should fall to support both the economy and industry.
“We should not let others decide Europe’s electricity price every day,” the chancellor added. Austria relies heavily on Russian gas to power industry and heating. Before the Ukraine crisis, Vienna sourced a large share of its gas from Russia, though most of Austria’s electricity comes from renewables, an arrangement that has shaped public discussions about market linkage between gas and electricity (Bloomberg, 2022). The current debate reflects a shift away from Russian energy toward domestic and renewable sources, as noted by Reuters.
Across Europe, energy costs rose in the wake of reduced gas flows through Nord Stream and broader moves to diversify away from Russian energy.
Gas prices rise
Dmitry Medvedev, deputy chairman of Russia’s Security Council, warned that European gas prices could reach markedly higher levels as of year-end if trends continue. He noted the possibility of costs climbing from about 3.5 thousand euros to around 5 thousand euros per thousand cubic meters, a projection reported by various outlets (Bloomberg).
Medvedev’s comments framed a larger narrative about how European gas markets might evolve under current pricing dynamics as the year progressed.
The discussion closed with a common refrain from observers about the risk management of Russian energy, noting that energy conditions in Europe have been influenced by shifts in supply and demand as well as strategic policy choices in both regions (socialbites.ca, 2022).
Implications for Russia
Analysts cited by Bloomberg have noted that Russia could adjust gas exports to Europe without harming its own economy, provided oil prices and export volumes stay high enough to sustain a favorable current account. The analysis suggested Russia could weather partial reductions in gas flows if current income remains robust enough to cushion the economy.
Gazprom’s shipments to non-CIS destinations have slowed compared with earlier periods, contributing to upward pressure on prices across European hubs. As of late summer, ICE data showed elevated settlement prices for European gas futures, marking a high point in recent years and signaling continued volatility into the autumn and winter seasons.
Industry observers have projected that Gazprom could see gas prices approach record levels for the coming winter, should supply constraints persist. Meanwhile, analysts expect fluctuations in Europe’s gas supplies tied to ongoing maintenance and pipeline disruptions, reinforcing concerns about price stability as Nord Stream-related factors fade from immediate headlines.
Electricity prices in several European nations trended higher in tandem with gas costs. Reports highlighted Germany’s annual electricity contracts and rising consumer bills, with France and the United Kingdom signaling notable increases in household energy expenses as the year shifted into autumn.