OREANDA-NEWS  Electricity prices in Germany jumped by 29 percent amid the heat wave that engulfed most of the European region at the end of May. This is reported by Reuters with reference to data from Engie.

Analysts recorded a sharp jump in prices against the background of increased demand for indoor cooling. The high air temperature has led to a rapid increase in demand for air conditioners. To cover the growing demand, energy sources that are more expensive than wind power generation were needed, they are generated by coal and gas-fired power plants.

The increased demand for indoor cooling has increased the load on the German power grid. Experts predict that the tense situation will remain in the region at least until the end of this week. The air temperature will remain above normal. Against this background, electricity prices in Germany are unlikely to fall in the next few days, experts said.

The United Kingdom faced a similar problem. Against the background of a sharp rise in the price of energy resources due to the closure of the Strait of Hormuz, the local regulator Ofgem raised the limit on electricity prices for local households by 13 percent. In April-June, the upper limit of tariffs will be 1862 pounds instead of the previous 1641. Inflationary pressure on the British economy will continue even after the end of the war in Iran, experts predicted.