Soaring utility bills alarm Europe, raise fears for winter

MADRID (AP) — Wholesale prices for gas and electricity are surging across Europe, raising the prospect of increases in already-high utility bills and further pain for people who have taken a financial hit from the coronavirus pandemic.

Governments are scrambling to find ways to limit costs to consumers as scant natural gas reserves present yet another potential problem, exposing the continent to even more price spikes and possible shortages if it's a cold winter.

Nieves Leal, who lives in a working class neighborhood in Madrid, has already seen her electricity bill increase from an average of 90-100 euros ($106-118) every two months two years ago to 158 euros ($187) in June, according to the last invoice. News of all-time high wholesale prices and the political debate around them has her worried since average prices have already risen 35% over the past year.

Leal, 63, earns 500 euros ($590) a month cleaning houses part-time. She and her daughter who lives with her have stopped buying clothes, downgraded their electric contract to the bare minimum to power appliances, and cook, do laundry and iron only after 2 p.m. or on weekends, when rates are down.

“It’s shameful, but I have no other choice,” she said. “Even if I made twice what I make, I don't think any family can afford these abusive prices."

In the U.K., many people will see their gas and electricity bills rise next month after the nation’s energy regulator approved a 12% price increase for those without contracts that lock in rates. Officials in Italy have warned that prices will increase 40% for the quarter that will be billed in October.

And in Germany, retail electricity prices have already hit a record 30.4 cents per kilowatt hour, up 5.7% from a year ago, according to comparison site Verivox. That amounts...