November 16, 2022
November 16, 2022
Over the last 12 months, households bills in Europe have increased by 69% for electricity, and 111% for natural gas, according to the Household Energy Price Index for Europe, compiled by Energie-Control Austria, the Hungarian Energy and Public Utility Regulatory Authority (MEKH) and VaasaETT.
The Household Energy Price Index for Europe also demonstrates that the pace of retail energy prices is not balanced as the highest prices are nine times the level of the cheapest for electricity and 16 times in the case of gas.
The report brings price data for capital cities in 27 European Union member states, Montenegro, Norway, Serbia, Switzerland, Ukraine, and the United Kingdom.
The report shows that since the start of the energy crisis, household electricity prices increased by 77%, compared to 141% for natural gas (83% and 150% respectively for the EU and the UK combined). Government support measures were included in the calculation, wrote Philip Lewis from VaasaETT.
The HEPI index has now reached 298 points against a base level of 100 points in 2009 for the EU15.
The energy component is becoming dominant in the bills
The report also reflects on the change in the retail price structure. The authors said the rise in wholesale prices, combined with measures implemented by governments to ease the energy crisis by lowering network surcharges and taxes, made the energy component the dominant part of the bills.
Now it represents 66% of an electricity bill and 71% of a natural gas bill on average, according to the report.
A substantial discrepancy in retail prices within Europe
The change is making suppliers offer deals that are becoming exceptionally favorable for consumers to switch to another company.
Government subsidies combined with wholesale price volatility also caused a substantial discrepancy in retail prices within Europe.
Markets have fared differently during the crisis in terms of energy security, and so did the movements in retail energy prices, the authors pointed out.
The most expensive markets in terms of typical household energy prices are now nine times the level of the cheapest for electricity and 16 times in the case of gas, according to the report.
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