Rising global energy prices are creating social challenges, according to a report by S&P Global Ratings.

“Spiking gas, carbon, and power prices, particularly in Europe, are putting social challenges, such as energy affordability, under the spotlight," the agency said in its report, “Infrastructure & Energy Outlook.”

Oil prices have climbed to their highest level in three years as normalization from the coronavirus pandemic has created a surge in demand, while overall crude supply remains limited.

Natural gas prices in Europe hit a new record of €100 ($116) megawatt per hour in late September, a six-fold increase in less than a year when it stood at €16 megawatt per hour in early January, which poses a great risk against economic recovery and heating before the winter season.

"Price affordability will become an increasing focus as the roll-out of renewables and transition away from oil and gas will come at a cost," S&P said in the report that was released Monday./agencies