Europe battles skyrocketing energy costs as the Russia-Ukraine conflict continues
European service providers are preparing for the worst as power cuts threaten to down networks in the coming months. Telecom leaders, particularly in France and Italy, have been asking their respective governments to consider helping the communications industry handle rising energy costs, as well as protect them from what now appear to be inevitable, planned rolling blackouts.
The energy crisis is the result of Russia’s decision to cut gas supply in the wake of the Ukraine conflict, leaving the cost of energy in many European skyrocketing. In France, hospitals and defense infrastructures are considered “priority clients” if power is cut; however, fixed telecommunications and mobile networks are not. Telecom operators, which view their operations as vital, are pushing back on this non-priority classification.
Michel Combot, French Telecoms Federation’s managing director, told Politico that France is “not ready” for what might happen if telecoms networks are cut due to rolling blackouts. “That is a reality, and we are working on information and contingency plans with the government,” he said, adding that the federation does not blame the government but thinks “they don’t understand the consequences of interrupting telecoms networks.”
Similarly, Italy’s Employers Association of telecommunication operators, or Asstel, sent a letter to European Union (EU) industry Chief Thierry Breton last week requesting that telecoms entities to be treated like energy-intensive industries. If granted, operators may have access to reduced electricity bills, which have experienced a three-fold increase over the past year.
“Companies in the telecoms sectors continue experiencing increases of energy supply costs, while they must ensure continuity to their services,” the letter stated.
Two weeks ago, the EU received another letter, this one, signed by 15 European countries, asked that a broad price cap on all gas imports be imposed in order to bring soaring energy bills under control. The letter came from Belgium, Bulgaria, Croatia, France, Greece, Italy, Latvia, Lithuania, Malta, Poland, Portugal, Romania, Slovakia, Slovenia and Spain.
“The price cap … is the one measure that will help every member state to mitigate the inflationary pressure, manage expectations and provide a framework in case of potential supply disruptions, and limit the extra profits in the sector,” the letter said. “This cap is the priority.”
