A Swedish expert commodities analyst has warned that a Russian shut-off of gas to Europe could not only lead to higher prices for electricity but could collapse electrical grids as well.
Commodities analyst Christian Kopfer stated that if the Russians were to cut off gas supplies to Europe it could put a strain on electrical grids stating, “You have to maintain the voltage in the grid because when it falls too low, it can collapse. There is a risk that this could happen in Europe when consumption is reduced.”
Kopfer also wanted that a shortage of electricity in Europe could lead to a massive hike in the price of electricity in the winter months telling the newspaper Aftonbladet, “I don’t want to sound alarmist, but in terms of electricity supply, it’s a very problematic situation ahead of the winter months.”
“In a horror scenario, it can cost upwards of SEK 100,000 [£8,029/$9,773] a month for a household. If the price soars upwards of ten kronor per kilowatt-hour, industries can also become unprofitable and be forced to dispose of labour,” he added.