Amid energy crisis in Europe, power prices broke above 1,000 euros on Monday in the region for the first time.

Bloomberg reports that German baseload year-ahead power prices climbed as much as 6.6% to 1,050 euros ($1,053) per megawatt-hour during Monday’s trading session in Berlin.

The move followed a 25% jump on Friday in German and French electricity prices, leading French year-ahead electricity prices to break above 1,000 euros for the first time.

Natural gas is a key source of electricity generation in Europe.  Gazprom, a Russian government owned energy firm, has  shut down its Nord Stream 1 natural gas pipeline for maintenance between August 31 and September 2.

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Gazprom’s recent announcement was unexpected. Even though, Gazprom said it will resume gas flows if no problems are detected, analysts and some government officials think Russia is using Nord Stream 1 to bargain Western sanctions against the state and negotiate for the approval of certifications for Nord Stream 2 operation. The commencement of operation on Nord Stream 2 has been stalled because of the German government refusal to approve necessary certifications.

Nord Stream 1 has  capacity to transport over 160 cubic meters of gas daily. However, it has been been functioning below capacity as Gazprom continues to slash deliveries.

German utility company Uniper last week said it will restart a coal-fired power plant to generate electricity. It planned to provide electricity until the end of April 2023.

Russia in February invaded Ukraine, a war that has escalated geopolitical tensions and led to disruption in supplies of petroleum products.

Russia accounts for about one-third of oil supply to Europe and about 40 percent of natural gas supplies. However, the sanctions imposed on the country by the West has impacted on  its production output, causing tight supply of products.