— This is the script of CNBC's news report for China's CCTV on February 21, 2022, Monday.
We cannot accurately estimate economic losses caused by storm Eunice at this stage, but insurers have already been under pressure. British media reported that insurers had been inundated with calls from clients. One company saw enquiries for property damages surging by more than 400%.
Storm Eunice is likely to cause insurance losses of 200 million pounds to 350 million pounds due to property damage, business and travel disruption, according to PwC. It can also worsen the supply chain issue and inflation facing European countries. A lorry in the UK was overturned by the storm. Boats operations were disrupted in Ireland. And the railroad operator in Germany said that over 1000 km of tracks suffered damage. Data released a few days ago showed that inflation in the UK has reached the highest level in 30 years, and executives of European food giant Nestle and Durex parent company Reckitt Benckiser have also warned of further price hikes.
Though Eunice brought broad economic losses for countries impacted, it benefits the electricity supply there. Wind power accounts for a large share of the EU's total installed energy generating capacity.
Storm Eunice recorded the highest gust in the UK, with wind speed reaching 122 miles per hour or 193.34 km per hour. Real-time data provided by the British national grid show that wind power accounted for over 50% of the total electricity generation. That number was 19.3% a year ago. That caused electricity prices to decrease, helping ease the pressure from elevated electricity bills for British households.
However, lower prices may not sustain. The electricity market regulator in the UK has announced an increase of the energy price cap by 54% in April. And now, energy supply across Europe is also facing uncertainty from Russia-Ukraine geopolitical tensions.
The EU is working on a plan to sanction Russia. Italian Prime Minister Draghi is calling to not include energy imports into the proposed packages; However, European Commission President Von der Leyen said that this possibility has not been ruled out and she has already begun to prepare for a potential retaliation coming from Russia.
Ursula von der Leyen
President of the European Commission
I've been reaching out since weeks to other suppliers, First, and foremost, our friends in the United States. And we've been successful. We have now in January, the highest amount of LNG deliveries. And we know by now that we are if there is a decoupling of Russian gas as a retaliation, we are able to make it through this winter without Russian gas, but with supply from others, and this is good