Electricity bills worth 500,000 euros: a hotel chain closes down in Italy.

[Poker Player]

If they are in Italy but not using Solar panels for power I got to attribute some of their costs to misallocation of resources. 

And I got to attribute your sentence to not reading and shitposting. If you would read the OP, instead of typing fast for a quick buck you would see that it says they were not authorized to install solar panels.

At this current rate, the whole of Europe's economy might end up hibernating or moving in order to sustain production costs (put uprooting whole manufacturing plants and transporting them to countries like Canada would be expensive to do quickly).

This is what is going to happen, if production costs become unsustainable and cannot be passed on to the end consumer, there will only be two solutions: shut down, or move production to where it is cheaper.

IMO countries that decided to pursue green energy at all cost have shot themselves in the knee and this wasn't done willingly. Many countries opposed this but were forced into submission by the EU council that kept reducing their CO2 emission limits. In other words, the EU put its members in a crisis situation.

Well, it's partly because of what you say, but the war is what made it worse. I'm for treating the planet in a more sustainable way, but it's pathetic how the EU where 5% of the world's population lives sets itself up as the savior of the climate.

All over twitter and reddit there are stories of many small and medium type of businesses closing due to electricity costs. At first when the costs went up, they increased their prices, and then they went up again, and there was no point in increasing prices because nobody would buy a 20EUR cup of coffee.

This is the point. Nobody in going to pay 20EUR for a cup of coffee. Unless it's in the poshest place on the island of Capri. And not even that.

Why don't Italy invest in green energy? Greta said solar panels and wind turbines provide free and clean energy. Why not give it a try?

Renewable energy in Italy

Our hope now is the quick peaceful resolution of the war in Ukraine. 

I think so. What happens is that it does not seem that a peaceful solution is going to be reached, and even less so in the short term.

Green energy wouldn’t be enough. You just can’t manufacture enough equipment and install enough equipment to make a difference. Wind energy you can only put it in certain areas. And solar energy is very expensive to produce and install.

We already got tons of green energy everywhere pretty much but we still rely on the old energy. It’s not going anywhere. Not anytime soon.

The problem with energy is that you can't store it. We get energy from the sun when it is sunny but not when it is cloudy or at night, and energy from the wind when it is windy, but not when it is not windy. That's why you need a mix with other sources that are in constant supply.

I don't know whether they need to increase the price of coffee to €20, for the business to remain profitable. But in case if that happens, then there are few scenarios.
...

There is only one scenario. Being the average price of coffee in Italy 1EUR until recently if they have to put it at €20, they have no choice but to close.

Italians are furious as the cost of an espresso soars toward record highs

Although €20 is probably too much of an exaggeration. It would have to go from €1 to at least €3 or 4, but with a 400% increase they are going to run out of customers.

I can safely say the main reason is the ongoing Russia Ukraine war and the sanctions that some western countries have imposed on Russia. But do you understand who is playing the main game from behind? It's US! After the war started US has imposed multiple sanctions on Russia and some EU countries like France or UK also followed through without understanding what game US is playing with them from the disguise of NATO.

US people is not paying the price of the war...

I agree that the USA gains more than Europe, but this last sentence is incorrect. In the USA they also have high inflation and other problems which are reasons, together with the immigration crisis, that the polls for Biden for the mid-term elections are catastrophic.

Sometimes this type of news is an unnecessary catalyst to say negative things about a real issue, I repeat it, but this hotel instead of reinventing itself and announcing reductions, they do the simple; ..."we close and when things improve maybe we will open again,"... it's okay, it's a logical business decision, perhaps framed in not being able to sustain prices in the face of the competition? not wanting to lower the status of the hotel?... the price of electricity in the tourist sector, like in many other sectors, is badly hit, but without a doubt it is one of those that can perhaps be better reinvented, most than other areas.

Explain. When your energy costs go up 300% and you can't put solar panels on, how are you going to become more efficient. By changing the windows? You don't solve the problem and also changing them has a cost.

Explain well the solution you have to combat the 300% increase in energy prices.

The news I posted about the hotel is one but search and you will see a lot of companies in Europe stopping production or planning to shut down because of energy costs.

[$anounimus$]

Yes, Electricity is one of the main costs for the hotel industry. All utility bills add up over time, and owners often find themselves unable to afford it. Therefore, they have to sell their hotel at a low price or leave it as it is.

This is the reason why hotels of this type are disappearing from Italy, but not only here. Due to the crisis, many hotels are closed and empty.

Solving this problem seems almost impossible because all the factors that affect costs cannot be controlled by one party. Relying on renewable energy sources might help the hotel industry to some degree, but it will require serious investment.

[Findingnemo]

The amount looks insane and yeah price hike of 300% can't bearable unless the company wants to spend their money from their pockets to sustain in the business until the return of normality but as wise decision they decided to close and don't want to spend any money but imagine what will happen if every business takes out this stance? The government has to take some chances now to keep the business on the run or else they will be facing serious economy loss in near future.

[Agbe]

If energy costs are not reduced, much productive activity will come to a standstill in Europe.

I understand that it is something difficult in the midst of the war between Ukraine and Russia, and that efforts are being made for it, but if this is not solved in a short time in Europe there will be people going hungry and cold as it has not happened for many decades.

Most businesses in my location depend solely on generators to power their machines and other appliances because of unstable power supply and the high cost of power. The government has always subsidized the cost of fuel making it very affordable. But the global economic crisis has skyrocketed the cost of subsidies and the government cannot sustain it anymore. The government is scared that removing fuel subsidies would lead to public unrest, hence they are even borrowing to sustain it. This has really affected the economy negatively because a large chunk of the country's income goes to debt servicing.   

The government has given a timeline for the removal of these subsidies and when that happens businesses would start shutting down. 50% of businesses in my locality might not be able to afford the cost of powering their machines with generators if the subsidy on fuel is scraped. Switching to renewable would be very slow because of its cost, except the government also subsidizes the price. Our hope now is the quick peaceful resolution of the war in Ukraine. 

There is conspiracy against the citizens in my country if not why country that supply energy to another Countries suffers in light energy. The business elites will the Political elites came to an agreement that there would be no constant light  in the country so that those who sell fuel can sell it in a high price and also those who import generators can sell to the citizens. Therefore, with this now the energy generating companies also join the team (cartel) or group to give 1,2,3,4 hours light. In my locality, the village which is one of the crude oil producing communities including the city has not gotten 24 hours light. That is we have not slept with  or see a light for 24 hours. The worst part of the matter is that, generators which we use to do our daily businesses have increased price (inflation), what of fuel price, now the average person not do business in the country again. Government is to create conducive environment for his citizens but irony is our own.

[zasad@]

Most business in Europe profited because their countries bought cheap resources from Russia and other countries. Now this opportunity has ended and some companies will go bankrupt. I think the quantitative easing program will start working in many countries soon.

[virasisog]

The amount looks insane and yeah price hike of 300% can't be bearable unless the company wants to spend their money from their pockets to sustain the business until the return of normality but as a wise decision, they decided to close and don't want to spend any money but imagine what will happen if every business takes out this stance? The government has to take some chances now to keep the business on the run or else they will be facing serious economic loss in near future.

300% is already too much and an injustice for their consumers. The inflation crisis is getting worse but increasing the electricity bills too high will surely affect small and huge businesses and may be the reason for them to shut down their business especially if they won't be able to sustain it.
The energy cost increase is also a burden to ordinary people especially the minimum and middle wagers. The government must find alternatives and back up to fix this problem because if it will continue, this will hit their economy badly. They should check it the long time effect and find a long term solution for this.

[Findingnemo]

The amount looks insane and yeah price hike of 300% can't be bearable unless the company wants to spend their money from their pockets to sustain the business until the return of normality but as a wise decision, they decided to close and don't want to spend any money but imagine what will happen if every business takes out this stance? The government has to take some chances now to keep the business on the run or else they will be facing serious economic loss in near future.

300% is already too much and an injustice for their consumers. The inflation crisis is getting worse but increasing the electricity bills too high will surely affect small and huge businesses and may be the reason for them to shut down their business especially if they won't be able to sustain it.
The energy cost increase is also a burden to ordinary people especially the minimum and middle wagers. The government must find alternatives and back up to fix this problem because if it will continue, this will hit their economy badly. They should check it the long time effect and find a long term solution for this.

Normally government will take the burden at situation like this instead of completely forcing the consumers but later they compensate the loss from electricity with increasing the taxes gradually that can be applied here as well instead of completely forcing the consumers to pay for it. If the government is going to point out other nations political issue is the reason then the respective government is actually failed to fulfill the people requirements.

[Sithara007]

300% is already too much and an injustice for their consumers. The inflation crisis is getting worse but increasing the electricity bills too high will surely affect small and huge businesses and may be the reason for them to shut down their business especially if they won't be able to sustain it.
The energy cost increase is also a burden to ordinary people especially the minimum and middle wagers. The government must find alternatives and back up to fix this problem because if it will continue, this will hit their economy badly. They should check it the long time effect and find a long term solution for this.

Confusing.

Even if the electricity bills are up by 300%, they don't need to increase the price of their services by that much. Because electricity costs are only a part of the overall cost. So if they increase the price by 50% or so, they should be able to survive. But even this 50% increase may be too hard for many of the customers, at a time when there is economic slowdown. And also, we need to see whether these levels will remain as such for the medium term. Gas/electricity prices are abnormally high. Increased production should bring down the prices within the next few months. Till then, it is the duty of the government to support small businesses.

[Poker Player]

Normally government will take the burden at situation like this instead of completely forcing the consumers but later they compensate the loss from electricity with increasing the taxes gradually that can be applied here as well instead of completely forcing the consumers to pay for it. If the government is going to point out other nations political issue is the reason then the respective government is actually failed to fulfill the people requirements.

Yes, of course, now it turns out that socialism, which is one of the most important causes of the problem, is going to get us out of it.

So with the price of energy having increased by at least 300%, and in some places in Europe it is more, you want the government to raise taxes on top of that?  Great plan, eh?

Most business in Europe profited because their countries bought cheap resources from Russia and other countries. Now this opportunity has ended and some companies will go bankrupt. I think the quantitative easing program will start working in many countries soon.

This you say is interesting and I think this is what is going to happen. The policy of raising rates and tightening has been given a reality check and they are going to have to slow down, if not go back to printing and easing because otherwise the 2008 recession is going to be child's play compared to this.

[doomloop]

From what I've searched, huge percentage of Italy uses fossil fuel for their electricity. Our country uses the same material and electricity cost here have almost become tripled. Solar or hydro powered energy became popular now with the rising electricity costs and I think government should start considering this as an alternative option. Since Italy is a rich country, I think it's possible for them to switch to those options,

If they are truly a rich country then why they are struggling with this issue? But, you don't really need to be rich in order to afford the materials to be able to use natural energies. They can always consider this for now till the electric cost becomes cheap again for some time.

The only problem here that is see is if these kinds of energy can sustain a big business such as hotels as we know that they aren't really sustainable. Maybe it's also good for them to take a break for a while and maybe this can be a sign for them to venture other businesses which aren't totally relying on electricity. I think there are types of businesses who are like that.

[Findingnemo]

Normally government will take the burden at situation like this instead of completely forcing the consumers but later they compensate the loss from electricity with increasing the taxes gradually that can be applied here as well instead of completely forcing the consumers to pay for it. If the government is going to point out other nations political issue is the reason then the respective government is actually failed to fulfill the people requirements.

Yes, of course, now it turns out that socialism, which is one of the most important causes of the problem, is going to get us out of it.

So with the price of energy having increased by at least 300%, and in some places in Europe it is more, you want the government to raise taxes on top of that?  Great plan, eh?

I am not saying that government has to increase the tax on top of 300% hike in the electricity bills, I am suggesting the government has to bear the price hike by paying the price to electricity from their pocket and don't let the people to bear them at all, to compensate what they paid now, in the future they can make up by gradually increasing the taxes on various sectors without affecting the business and every individual living in their nation.

[zasad@]

Most business in Europe profited because their countries bought cheap resources from Russia and other countries. Now this opportunity has ended and some companies will go bankrupt. I think the quantitative easing program will start working in many countries soon.

This you say is interesting and I think this is what is going to happen. The policy of raising rates and tightening has been given a reality check and they are going to have to slow down, if not go back to printing and easing because otherwise the 2008 recession is going to be child's play compared to this.

Quantitative easing is one way to rob your population by depreciating the currency.But European sanctions will kill the European economy before the Russian one, so quantitative easing will only slightly postpone some problems until a later date.

[DudeAtWork420]

Looks like electricity prices have tripled in Italy too so that would have taken a bill that was probably around €160K and made it the €500k.

Considering most of the EU was meant to be half renewable and is on paper, I don't know why these rates are going up so much and why larger companies can't take advantage of it and make renewable sources a lot cheaper. At this current rate, the whole of Europe's economy might end up hibernating or moving in order to sustain production costs (put uprooting whole manufacturing plants and transporting them to countries like Canada would be expensive to do quickly).

EU played a huge gamble by turning against Russia. Now they have no other option but to buy gas from USA in a considerable higher price. If EU shift towards renewable energy then what will happens to their manufacturing sectors? German automobile industry survive because of cheap Russians gas. Now living standard of EU will considerably lower. Fully shifting into renewable energy sectors can not replace the necessity of cheap Russians gas in many sectors.

[famososMuertos]

::../Q/. ..::,,,

Sometimes this type of news is an unnecessary catalyst to say negative things about a real issue, I repeat it, but this hotel instead of reinventing itself and announcing reductions, they do the simple; ..."we close and when things improve maybe we will open again,"... it's okay, it's a logical business decision, perhaps framed in not being able to sustain prices in the face of the competition? not wanting to lower the status of the hotel?... the price of electricity in the tourist sector, like in many other sectors, is badly hit, but without a doubt it is one of those that can perhaps be better reinvented, most than other areas.

Explain. When your energy costs go up 300% and you can't put solar panels on, how are you going to become more efficient. By changing the windows? You don't solve the problem and also changing them has a cost.

Explain well the solution you have to combat the 300% increase in energy prices.

The news I posted about the hotel is one but search and you will see a lot of companies in Europe stopping production or planning to shut down because of energy costs.

First of all if you take that paragraph as the only one, my context is lost. In this very specific case; Hotels.

The explanation is there, it is long but at least in the PDF they explain it and very well, you have to read it, for this particular case "Hotels" and it is the subject of my idea, which by the way is nothing against your idea of ​​publication, it is the context of the news that is attached to or takes advantage of a real moment, that it overwhelms many sectors, there are many examples, yes!, but this sector "hotels" is a wasteful.

It is the point, on the contrary, they are the ones that should be demonstrating strength of support in the face of a long-announced crisis that is simply having a high point to perhaps finally draw the attention of the sector, when you have been told for more than 20 years.

Finally:The objective news is, "The hotel sector suffers the consequences of its little attention to the calls that have been made to them for years and as expected in this electricity crisis they are the first to fall from the tourism sector".

[fiulpro]

To be honest such big companies could invest a this money, consider 500,000 euros once and start investing in green energy. The installed capacity is biggest for " Solar energy" in Italy, thus to be honest people could take a step further and extend it by making it better. Italy would definately have better options since they are already generating loads of green energy 40% + but amount of private institutions involved in it might be nominal thus it's defiantly important to have better ideas. Once you close they won't be able to open again that easily, it takes a lot of work, loads of time and also loads of money as well in the start.

[jackg]

Looks like electricity prices have tripled in Italy too so that would have taken a bill that was probably around €160K and made it the €500k.

Considering most of the EU was meant to be half renewable and is on paper, I don't know why these rates are going up so much and why larger companies can't take advantage of it and make renewable sources a lot cheaper. At this current rate, the whole of Europe's economy might end up hibernating or moving in order to sustain production costs (put uprooting whole manufacturing plants and transporting them to countries like Canada would be expensive to do quickly).

EU played a huge gamble by turning against Russia. Now they have no other option but to buy gas from USA in a considerable higher price. If EU shift towards renewable energy then what will happens to their manufacturing sectors? German automobile industry survive because of cheap Russians gas. Now living standard of EU will considerably lower. Fully shifting into renewable energy sectors can not replace the necessity of cheap Russians gas in many sectors.

I don't think it was a gamble. Russia was unlikely to stop at Ukraine and go further through Europe to start annexing countries in the EU and close neighbours.

Renewables were considered more efficient than trans atlantic cabling but it might be faster to lay those cables too than it will be to wait for renewables to power a lot of the grid. That would probably annoy the US quite a bit too as they'll not get cheap gas from Canada (as they already do).

I've been reading through quite a bit of what's gone wrong (put harshly) with this and 1 paying people too little for producing their own electricity and 2 taxing them on that production looks like it is dissincentivised in a lot of areas (like Spain's solar tax).

[Sithara007]

To be honest such big companies could invest a this money, consider 500,000 euros once and start investing in green energy. The installed capacity is biggest for " Solar energy" in Italy, thus to be honest people could take a step further and extend it by making it better. Italy would definately have better options since they are already generating loads of green energy 40% + but amount of private institutions involved in it might be nominal thus it's defiantly important to have better ideas. Once you close they won't be able to open again that easily, it takes a lot of work, loads of time and also loads of money as well in the start.

First of all, not all forms of renewable energy maybe suitable for all geographies. For example, solar panels maybe suitable for regions such as Southern Italy. However, I really doubt whether they will be very useful in countries such as Iceland and Norway. Wind turbines may work in Netherlands and England. But I doubt whether they will have the same effect in coastal Germany. A combination of renewable and non-renewable energy would be the best way to move forward. Issues arise when the socialist dictators in EU decide to suddenly phase out non-renewables.