COVID-19 impact on the power sector

News Article

Investment capacities fall amid COVID-19 impact

In 14 European countries a temporary moratorium has been announced on energy bills. In some countries, they have been decided by governments or energy regulators. In others, they have been announced by utilities themselves to relieve consumers faced with financial difficulties. Across Europe, there is a general commitment not to disconnect customers.

Coupled with a shrinking electricity demand and plummeting power prices, the energy bill moratoria are likely to have an impact on the capacity of utilities to invest. Rather than opting for new investments, companies are seeking to limit costs to safeguard liquidity and ensure stable operations.

Overall, new investments of utilities are likely to decrease 10-15%.

Economic recovery measures, amounting around € 1880 billion, have been announced by governments in EU Member States to address the immediately impacted industries. Yet, for a sustainable recovery, Europe’s plans should also concentrate on delivering the energy and climate ambitions.

You can now read Eurelectric's report on the impact of COVID-19 on customers and societies here. For country specific information check the "News from our members section" on our dedicated page.