2024-10-28 13:14:00
The average electricity price for households in the European Union (EU) increased slightly in the first half of 2024 compared to the second half of 2023, from 28.3 euros to 28.9 euros per 100 kilowatt hours (kWh), the European statistical office Eurostat reported in a press release on Monday.
Despite falling energy prices, average electricity prices increased slightly in the first six months of 2024 in the European Union. The European Statistical Office attributes this slight increase to governments, which have reduced subsidies, benefits and tax reductions for consumers. The average price of electricity is, however, lower than in the first half of 2023, when it amounted to 29.4 euros per 100 kWh.
The highest electricity prices (including taxes) in the first half of 2024 were recorded in Germany (39.5 euros per 100 kWh), Ireland (37.4) and Denmark (37.1). The lowest were observed in Hungary (10.9), Bulgaria (11.9) and Malta (12.6). Belgium is in the upper part of the table with 33.54 euros per 100 kWh.
According to Eurostat, the tax increase also slowed the decline in the average gas price. This decreased by 7% compared to the same period last year, going from 11.9 euros to 11 euros per 100 kWh. It is also 2% lower than the average price for the second half of 2023, established at 11.3 euros per 100 kWh.
Finally, between the first half of 2023 and the first half of 2024, domestic gas prices (including taxes) fell in 15 of the 24 EU countries. Lithuania (-60%), Greece (-39%) and Estonia (-37%) recorded the largest decreases. Belgium comes in 4th position with a drop of 30%. Conversely, the countries which observed the most significant increases are Italy (+16%), France (+13%) and Romania (+7%).
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**Interview with Dr. Elena Marcovici, Energy Economist**
**Editor:** Thank you for joining us today, Dr. Marcovici. The latest report from Eurostat indicates a slight increase in electricity prices for households in the EU. Can you explain what factors contributed to this rise despite general decreases in energy prices?
**Dr. Marcovici:** Thank you for having me. The increase to 28.9 euros per 100 kWh can largely be attributed to shifts in government policy. Many EU countries have been gradually reducing subsidies, benefits, and tax reductions that were initially put in place to support consumers during the energy crisis. This reduction in financial aid has led to the observed upward pressure on electricity prices, even when wholesale energy prices are dropping.
**Editor:** That’s interesting. You mentioned that the current average price is still lower than in the first half of 2023. How do you think this trend will impact consumers moving forward?
**Dr. Marcovici:** While it’s true that the average price has decreased compared to last year, the increase in the first half of 2024 reflects a critical change in consumer sentiment. Many households may feel the pinch as the removal of subsidies could lead to more financially vulnerable situations. Keeping electricity affordable is essential, and should this trend continue, we may see rising public concern and pressure on governments to re-evaluate their policies.
**Editor:** In your opinion, how do the variances in electricity prices across different EU countries affect overall energy policy within the union?
**Dr. Marcovici:** The disparities in electricity pricing are quite stark, with countries like Germany, Ireland, and Denmark facing prices over 37 euros, while Hungary and Bulgaria are significantly lower at around 11-12 euros. This highlights the need for a more harmonized energy policy across the EU. Countries with high prices might struggle with energy poverty, while those with lower prices could face different regulatory challenges. It raises important questions about market integration and fair energy access for all European citizens.
**Editor:** Thank you, Dr. Marcovici, for sharing your insights today. What should consumers keep an eye on as we head further into 2024?
**Dr. Marcovici:** Consumers should stay informed about potential changes in government policies regarding energy subsidies and tax benefits. They should also consider their energy contracts, especially in light of fluctuating prices and shifting trends towards renewable energy sources. It’s essential to make prudent choices that not only meet immediate budget needs but also contribute to long-term energy sustainability.
**Editor:** Excellent advice! Thank you again for your valuable perspective on this important topic.
In electricity prices across different EU countries, such as the highs in Germany and the lows in Hungary and Bulgaria, affect overall energy policy in the region?
**Dr. Marcovici:** The disparity in electricity prices among EU member states illustrates the complexities of energy policy and market dynamics within the union. Countries with higher costs may face greater political pressure to reform and innovate in their energy markets, particularly in adopting renewable energy sources and improving energy efficiency. On the other hand, lower-priced countries like Hungary and Bulgaria may need to find a balance between maintaining low prices and achieving sustainability goals. This variance could lead to discussions about more unified EU energy policies that ensure fair pricing while promoting green energy initiatives across the board.
**Editor:** That raises an important point. As we look ahead, what measures could governments implement to protect households from potential price hikes while also encouraging sustainable energy practices?
**Dr. Marcovici:** Governments could consider reinstating targeted subsidies or introducing price caps for vulnerable consumers. Additionally, investments in renewable energy sources could help stabilize prices in the long run. Improving energy efficiency through incentives for households to adopt energy-efficient appliances and insulation can also offset costs. Ultimately, a multi-faceted approach that combines immediate financial relief with long-term sustainability initiatives will be crucial in navigating the complexities of the energy market.
**Editor:** Thank you, Dr. Marcovici, for sharing your insights on this evolving situation. It’s crucial to keep an eye on both consumer impacts and broader energy policies in the coming months.
**Dr. Marcovici:** Thank you for having me. It’s been a pleasure discussing this important topic.