Tax-free prices for electricity and natural gas soared after Russia’s invasion of Ukraine. They are now decreasing. Although slightly higher than in the second half of 2022, final prices including tax for customers reached their maximum in the first half of 2023.
Electricity and gas prices, which saw a sharp increase after Russia’s invasion of Ukraine, are now stabilizing in Europe, after reaching a peak in the first half of 2023.
Some countries have already frozen the support measures they offered to households, leading to a rise in consumer prices.
The EU seems more ready to face winter this year, and it is worth noting that there are disparities between electricity and natural gas prices in different countries, both internally and internationally. outside the Union.
Which countries have the highest and lowest prices in Europe, and how much have electricity and natural gas prices increased since Russia invaded Ukraine in February 2022?
During the first half of 2023, the average price of electricity, including all taxes, for households in the EU increased from 25.3 euros per 100 kWh to 28.9 euros per 100 kWh, compared to the same period in 2022.
Average natural gas prices also increased, from 8.6 euros per 100 kWh to 11.9 euros per 100 kWh during the same period. These are the highest prices recorded by Eurostat, the EU’s official statistical office.
Looking at year-on-year percentage changes, EU electricity prices increased by 14.5% in the first half of 2023, and gas prices increased by 37. 9%. These figures are lower than in the second half of 2022, when year-over-year percentage changes peaked.
These figures suggest that electricity and gas prices are stabilizing in the EU, according to Eurostat, even if final consumption prices with taxes are slightly higher than in the second half of 2022: prices excluding taxes of Electricity and natural gas are decreasing, but countries are partially withdrawing their support measures for the population to cope with rising energy prices, which explains the increase.
In the first half of 2023, VAT-inclusive electricity prices for domestic consumers in the European Economic Area (EEA) vary from €11.4 per 100 kWh in Bulgaria to €47.5 per 100 kWh in the Netherlands.
The Netherlands were followed by Belgium (€43.5), Romania (€42) and Germany (€41.3).
In nine Member States, electricity prices were higher than the EU average.
With France having the largest share of nuclear in its electricity mix (68.9% in 2021) within the EU, its electricity prices were significantly lower than the EU average, at €23.2 for 100 kWh during the first half of 2023.
This is not the case for Belgium, where the share of nuclear power in electricity production is 50.6%. Belgium comes second on the list of most expensive electricity prices.
EU candidate countries have the cheapest electricity
If we include the candidate countries In the EU, Turkey has the lowest electricity prices, with 8.4 euros per 100 kWh. The six countries at the bottom of the scale are all candidate countries for EU membership, with prices that vary little from one country to another.
Average household gas prices in the first half of 2023 were lowest in Hungary (€3.4 per 100 kWh), Croatia (€4.1) and Slovakia (€5.7), and highest in the Netherlands (€24.8), Sweden (€21.9) and Denmark (€16.6).
The EU average was 11.9 euros. In eight EU member states, gas prices were higher than the EU average, suggesting that households in these countries paid significantly more.
Gas prices were lowest in Turkey (2.5 euros), if EU candidate countries are included. Unlike electricity prices, EU accession candidates do not have the lowest gas prices, as countries like North Macedonia (10.4 euros) and Bosnia- and Herzegovina (5.9 euros).
In the first half of 2023, the Netherlands has the highest electricity and gas prices in the EU.
ADVERTISEMENTElectricity and gas prices have increased in almost all EU countries
Electricity prices for households increased in 22 EU countries in the first half of 2023, compared to the first half of 2022, according to Eurostat data. Gas prices have soared in 20 of the 24 EU members.
Why have electricity prices in the Netherlands soared by almost 1000%?
The Netherlands saw the largest increase in electricity prices across countries, at 953%. According to Eurostat, this extraordinary increase is linked to several factors: not only were the 2022 tax relief measures removed in 2023, but at the same time, taxes on household electricity have doubled.
However, the government must introduce a price cap which will bring prices down at all levels quite significantly, in 2023.
The Netherlands is followed by Lithuania (88%), Romania (77%) and Latvia (74%).
In contrast, electricity prices fell in five EU member states, with Spain recording a significant fall of 41%, followed by Denmark (16%).
ADVERTISEMENTGas prices have increased by more than 100% in some countries
Natural gas prices have increased significantly in several European countries, with increases of more than 100% in Latvia, Romania and Austria. These countries are followed by the Netherlands (100%), Turkey (92%) and Ireland (73%).
EU countries like Italy, Estonia and Croatia saw declines of less than 1%. North Macedonia, a candidate for EU membership, recorded the biggest drop of 14%. All these changes are based on national currencies.
EU energy imports from Russia have fallen dramatically
Eurostat has recorded a dramatic change in the amount of energy the EU has imported from Russia since it launched its war against Ukraine. Strong growth in renewable energy, as well as gas from Norway and the United States, has helped offset the dramatic fall in Russian energy.
The most striking change concerns natural gas.
EU natural gas imports from Russia accounted for almost 50% of the total, before the war. This proportion decreased significantly in 2022, falling to 12% in October.
ADVERTISEMENTIt remains to be seen whether the recent outbreak of war between Israel and Hamas will have a similar and lasting effect on energy supplies and prices in Europe.
