European companies have reduced their forecasts amid global bottlenecks, while European gas prices, still over 350% higher than at the start of 2021, have caused more power supply companies in the region to buckle.

Suppliers in European markets, including Britain, have gone bankrupt in recent weeks due to the energy price surge.

To alleviate China's crisis, Beijing has launched a slew of measures to increase coal output, which feeds around 60% of its power plants. However, those measures were taking time to take effect, as demand for power continued to rise.

Fuel costs are still extremely high, with oil trading near 3-year highs on Monday above $85 a barrel and up more than 60% this year.

The European gas benchmark has dipped from this month's peak, but it is still up more than 350% this year.

Russia, which supplies roughly one-third of Europe's gas, has stated it is willing to pump more, but Russian officials have also said Europe could alleviate its supply shortfall and high costs by approving the Nord Stream 2 gas pipeline project.

The pipeline, which would double Russia's piped export capacity to Germany via the Baltic Sea, announced that it had taken a further step to prepare for start-up.

However, approval to begin operations may take months for the project, which the US and some European countries oppose due to concerns it will increase Europe's reliance on Russian energy.