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[F.News] week 40

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ENERGY :

Are we condemned to more sobriety in the coming months?

The shortage of raw materials affects almost all sectors, from the automobile to the food industry, including construction and transport. In these sectors, companies are facing increasing delivery times and a price spike rarely known on so many materials and components at the same time. Price increases range from 50% to 80% for major metals such as aluminum or steel. Not accommodating the business, transportation costs have also increased sixfold in recent months…

The origins of this shortage are, of course, partly linked to the current health and economic crisis (reduction in trade, rapid increase in Chinese demand, halting of certain products, etc.) But it is above all the precocity and power of the economic recovery in China and the United States that have yearned for a large part of the world’s reserves. On the other hand, we cannot overlook other factors such as the scarcity of certain resources and the very unequal distribution of reserves in the world…

We need to be prepared to live differently. Experts predict that this crisis will last and cause further upheavals—

Source : les EchosGHI

ENERGY :

Electricity: the failure of Europe’s energy…

Energy Europe was supposed to bring down prices.

Since its implementation at the Barcelona Summit in 2002, electricity prices have risen steadily and continuously throughout Europe. In 20 years, in an environment of low inflation and even quasi-deflation, electricity prices have increased by more than 70% in France. In other countries, they have sometimes multiplied by two or three. These figures date back to before the current energy crisis.
Some of these increases are related to the development of renewable energy. Germany, which has electricity that is 30% more expensive than its European neighbours, is massively financing its energy transition since its decision to stop nuclear power in 2011 through energy bills.
French consumers also pay a lot to ensure the development of renewable energies. Some EUR 160 billion has been collected through invoices over the past 15 years for an inconclusive result, as a Court of Auditors report showed: Renewable energy accounts for just 15% of electricity production in France.
But another part, the most substantial, comes from the way in which Europe has decided to organise a supposedly single market for electricity. This resulted in a disintegration of the national electricity systems, the loss of all economies of scale and stability, going as far as driving some producers into bankruptcy (such as E.ON and RWE in Germany in 2018), accompanied by an explosion of indirect taxation. All in favour of financialization, with the sole aim of promoting artificial and subsidized competition… All financial trading specialists say that the electricity markets are the most volatile, the most unpredictable, and also the most opaque – manipulations are easy and rarely sanctioned – of the world. You can lose or gain fortunes in a matter of hours. A whole financial industry has developed there from derivatives that are supposed to cover the risks, adding additional risks to this highly speculative market.
Moreover for France, in 2019, under the strong influence of the European Commission and the government, the very “independent” energy regulator decided again to change the supply costs: nuclear rent did not benefit the private sector sufficiently, according to them…

French consumers also pay a lot to ensure the development of renewable energies. Some EUR 160 billion has been collected through invoices over the past 15 years for an inconclusive result, as a Court of Auditors report showed: Renewable energy accounts for just 15% of electricity production in France.
But another part, the most substantial, comes from the way in which Europe has decided to organise a supposedly single market for electricity. This resulted in a disintegration of the national electricity systems, the loss of all economies of scale and stability, going as far as driving some producers into bankruptcy (such as E.ON and RWE in Germany in 2018), accompanied by an explosion of indirect taxation. All in favour of financialization, with the sole aim of promoting artificial and subsidized competition…

All financial trading specialists say that the electricity markets are the most volatile, the most unpredictable, and also the most opaque – manipulations are easy and rarely sanctioned – of the world. You can lose or gain fortunes in a matter of hours. A whole financial industry has developed there from derivatives that are supposed to cover the risks, adding additional risks to this highly speculative market.
Moreover for France, in 2019, under the strong influence of the European Commission and the government, the very “independent” energy regulator decided again to change the supply costs: nuclear rent did not benefit the private sector sufficiently, according to them…

Source : MédiapartTransitions et énergies

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