Household energy prices in the EU down compared with 2016

Household energy prices in the EU down compared with 2016

Household energy prices in the EU down compared with 2016

The FINANCIAL -- In the European Union (EU), household electricity prices slightly decreased (-0.5%) on average between the first half of 2016 and the first half of 2017 to stand at €20.4 per 100 kWh. Across the EU Member States, household electricity prices in the first half of 2017 ranged from below €10 per 100 kWh in Bulgaria to more than €30 per 100 kWh in Denmark and Germany.

Household gas prices fell by 6.3% on average in the EU between the first halves of 2016 and 2017 to stand at €5.8 per 100 kWh. Among Member States, household gas prices in the first half of 2017 ranged from less than €3.5 per 100 kWh in both Romania and Bulgaria to slightly above €8 per 100 kWh in Denmark and €12 per 100 kWh in Sweden.

Taxes and levies in the EU made up on average over a third (37%) of the electricity price charged to households in the first half of 2017, and about a quarter (26%) of the gas price.

Highest increases in electricity prices in Cyprus, Greece and Belgium, largest falls in Italy, Croatia and Lithuania

Across the EU Member States, the highest increase in household electricity prices in national currency between the first half of 2016 and the first half of 2017 was registered by far in Cyprus (+22.0%), followed by Greece (+12.8%), Belgium (+10.0%), Poland (+6.9%), Sweden (+5.5%) and Spain (+5.1%). In contrast, the most noticeable decreases were observed in Italy (-11.2%), Croatia (-10.2%) and Lithuania (-9.3%), well ahead of Luxembourg (-4.9%), Austria (-4.1%), Romania (-4.0%) and the Netherlands (-3.6%).

Expressed in euro, average household electricity prices in the first half of 2017 were lowest in Bulgaria (€9.6 per 100 kWh), Lithuania (€11.2) and Hungary (€11.3) and highest in Denmark and Germany (both €30.5) followed by Belgium (€28.0). The average electricity price in the EU was €20.4 per 100 kWh.

When expressed in purchasing power standards (PPS), an artificial common reference currency that eliminates general price level differences between countries, it can be seen that, relative to the cost of other goods and services, the lowest household electricity prices were found in Finland (12.8 PPS per 100 kWh), Luxembourg (13.5) and the Netherlands (14.2), and the highest in Germany (28.7), Portugal (28.6), Poland (25.9), Belgium (25.6) and Spain (25.4).

Half or more of the electricity price is made up of taxes and levies in Denmark, Germany and Portugal

The share of taxes and levies in total household electricity prices varied significantly between Member States, ranging from two-thirds in Denmark (67% of household electricity price is made up of taxes and levies) and over half in Germany (54%) and Portugal (52%) to 5% in Malta in the first half of 2017. On average in the EU, taxes and levies accounted for more than a third (37%) of household electricity prices.

Largest fall in gas prices in Croatia and Portugal, highest increase in Estonia

Between the first half of 2016 and the first half of 2017, household gas prices in national currency decreased in a large majority of Member States. The largest falls were recorded in Croatia (-17.5%), Portugal (-15.3%), Lithuania (-11.6%), Latvia (-10.8%) and Bulgaria (-10.3%). In contrast, the highest increase was observed in Estonia (+21.1%), followed by Denmark (+12.7%) and Sweden (+10.8%).

Expressed in euro, average household gas prices in the first half of 2017 were lowest in Romania (€3.2 per 100 kWh), Bulgaria (€3.3), Hungary (€3.5), Croatia (€3.6), Lithuania (€3.7) and Latvia (€3.8) and highest in Sweden (€12.1), followed by Denmark (€8.1), Portugal (€7.7) and the Netherlands (€7.6). The average gas price in the EU was €5.8 per 100 kWh.

Adjusted for purchasing power, it can be seen that, relative to the cost of other goods and services, the lowest household gas price was recorded in Luxembourg (3.5 PPS per 100 kWh), ahead of the United Kingdom (4.3) and Belgium (4.7). In contrast, the highest were observed in Portugal (9.7), Sweden (9.5) and the Czech Republic (8.4).

Highest share of taxes and levies in gas price in Denmark and the Netherlands, lowest in the United Kingdom and Luxembourg

In the first half of 2017, taxes and levies made up the largest contribution to the price of gas for households in Denmark (55% of household gas price) and the Netherlands (53%). They were followed by Romania (47%) and Sweden (44%). At the opposite end of the scale, the smallest contributions were registered in the United Kingdom (7%) and Luxembourg (10%), ahead of Greece (16%), Bulgaria, the Czech Republic, Lithuania and Slovakia (all 17%). At EU level, taxes and levies accounted on average for about a quarter (26%) of household gas prices in the first half of 2017.