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Cyprus registers the highest annual electricity price increase in the EU

21/05/2019 16:13

On average, household electricity prices in the European Union (EU) increased to €21.1 per 100 kWh (+3.5%), between the second half of 2017 and the second half of 2018, according to Eurostat, the statistical office of the European Union.

Across the EU Member States, the highest increase in household electricity prices in national currency between the second half of 2017 and the second half of 2018 was registered in Cyprus (+19.6%), followed by Spain (+13.8%), the Netherlands (+9.7%), the United Kingdom (+8.6%), Ireland (+7.8%) and Estonia (+7.5%). Decreases were observed in only four countries: Latvia (-4.5%) followed by Poland (-2.5%), Germany (-1.6%) and Lithuania (-0.9%). In Greece the increase was 1.6%, at the low end of the spectrum.

Nevertheless, according to Eurostat, the average EU household electricity price was only €0.1 per 100 kWh higher than in the second half of 2015, the former peak in the last ten years.

Across the EU Member States, household electricity prices in the second half of 2018 ranged from €10 per 100 kWh in Bulgaria to around €30 per 100 kWh in Denmark, Germany and Belgium.

Household gas prices increased by 5.7% on average in the EU between the second semester of 2017 and 2018 to €6.7 per 100 kWh. This is still €0.5 per 100 kWh lower than in the second half of 2014, the peak of gas prices in the last ten years.

Among Member States, household gas prices in the second half of 2018 ranged from below €4 per 100 kWh in Hungary, Romania and Croatia to around €9 per 100 kWh in the Netherlands, Spain, Denmark and Italy and more than €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 second half of 2018, and about a quarter (27%) of the gas price.

Expressed in euro, average household electricity prices in the second half of 2018 were lowest in Bulgaria (€10.1 per 100 kWh), Lithuania (€11.0) and Hungary (€11.2) and highest in Denmark (€31.2), Germany (€30.0) and Belgium (€29.4). The average electricity price in the EU was €21.1 per 100 kWh.

In Greece average household electricity prices stood at €16.5 euro and in Cyprus at €21.8.

Expressed in purchasing power standards (PPS), a common reference eliminating general price level differences between countries, it can be seen that the lowest household electricity prices were found in Finland (13.7 PPS per 100 kWh) and Luxembourg (13.8), followed by the Netherlands (15.2), Malta (15.7), France (16.4), Sweden (16.5) and Lithuania (17.3). The highest prices expressed in PPS were registered in Portugal (28.2), Germany (28.0), Spain (27.4), Belgium (26.6), Romania (26.3), Cyprus (24.5) and Poland (24.3). In Greece the same rate was 20 PPS units, lower than the EU average (21.1) and the euroarea average (21.8)

Meanwhile, the share of taxes and levies in total household electricity prices varied significantly between Member States, ranging from two-thirds in Denmark (64%) and over half in Portugal (55%) and Germany (54%) to only 6% in Malta. On average in the EU, taxes and levies accounted for more than a third (37%) of household electricity prices in the second half of 2018. In Cyprus taxes and levies correspond to 20% of the price and in Greece to 32% of the price.

The Gas Market:

Between the second half of 2017 and the second half of 2018, household gas prices in national currency increased in twenty Member States. The highest increases were observed in Ireland (+17.3%), followed by Bulgaria (+16.5%), Sweden (+16.4%) and Romania (+16.3%). In contrast, decreases were recorded in Croatia (-2.5%), Portugal (-1.9%), Hungary (-0.4%) and Germany (-0.2%).

Expressed in euro, average household gas prices in the second half of 2018 were below €5 per 100 kWh in Hungary and Romania (both €3.5 per 100 kWh), Croatia (€3.6), Lithuania (€4.1), Estonia and Luxembourg (both €4.3), Bulgaria (€4.4), Poland and Latvia (both €4.5), and Slovakia (€4.6). Gas prices above €10 per 100 kWh were recorded in Sweden (€12.2), followed by Italy (€9.5), Denmark (€9.1), Spain (€8.8) and the Netherlands (€8.6). The average gas price in the EU was €6.7 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 (4.7) Croatia and Estonia (both 5.6) as well as Belgium and Germany (both 5.7). In contrast, the highest prices were observed in Sweden (10.1), Spain (9.7), Italy and Portugal (both 9.6).

In the second half of 2018, taxes and levies made up the largest contribution to the price of gas for households in Denmark (54% of household gas price) and the Netherlands (52%). They were followed by Sweden (42%), Italy (35%) and Slovenia (30%). At the opposite end of the scale, the smallest contributions were registered in Luxembourg and the United Kingdom (both 10%), ahead of Greece (14%), Romania (16%) and Bulgaria, Czechia, Ireland and Slovakia (all 17%). At EU level, taxes and levies accounted on average for about a quarter (27%) of household gas prices in the second half of 2018.

In Greece the average gas price stands at 6.5 euro (8.0 PPS units) and the share of taxes and levies corresponds to 14% of the price.