The price increases for natgas and power are unusual for this time of year, raising concern prices will remain sticky and eat away wages. 

Natgas prices hit a record high last month due to slowing Russian supply causing a storage crunch on the continent. Then the lack of wind-driven electricity production forced European utility companies to fire up natgas turbines to satisfy energy shortfalls. This episode underlines the precarious state of the continent's energy markets ahead of winter. 

The price shock has been the most evident in the UK as the country learns a valuable lesson about relying on wind farms. Electricity prices have more than doubled in September and were seven times higher than at the same month in 2020. 

Power prices across the continent, from France, the Netherlands, and Germany, were also higher. 

Weather models forecast cool and dry conditions for Europe this winter could strain natgas supplies even further. 

"All our indicators on the weather and the fuel market side are bullish," said Georgi Slavov, head of fundamental research of broker Marex Spectron.

Bloomberg's Javier Blas writes, "This is simply incredible: UK day-ahead baseload electricity prices jump to a fresh all-time high of £354 per MWh on N2EX. Intraday prices for peak demand are much, much higher. To put into perspective, that's 700% higher than the ~£45 average 2010-2020 price."