Households, businesses and industrial enterprises will need to persevere with elevated electricity and natural gas prices for at least another year as de-escalation is not expected until spring, 2023, a European Commission report has indicated.

Energy prices in 2022 will be higher than those projected by the European Commission last autumn, according to this latest Brussels report, essentially admitting that, beyond geopolitical factors, structural problems are also impacting markets in this energy crisis.

Even if wholesale energy prices do not rise further, their overall increase in recent months may have not yet been fully passed on to the retail market, the European Commission study noted, suggesting further retail price hikes could be in store.

In Greece, energy prices are expected to peak in the first quarter of this year and then deescalate, but could remain at higher than normal levels, the report noted.

Higher energy prices are expected to fuel inflationary pressure in the Greek market and throughout Europe, the report added.

Developments in Ukraine will be crucial as to how the energy crisis plays out, it noted.

The combination of higher natural gas prices and carbon emission rights has driven electricity prices to levels of 220 euros per MWh, which could ease to approximately 180 euros per MWh over the next few months, still three times higher than levels recorded early in 2021.