Change Dynamics of Electricity Prices for Households in the European Union between 2011 and 2020

Abstract

The aim of the article: The aim of the article is to evaluate and analyze the dynamics of electricity prices for households in the European Union member states (EU-27) in the period 2011–2020. The study also focuses on the key components of electricity prices in the countries analyzed. The discussed issues are important from the socio-economic point of view. It refers to the issue of sustainable development, where electricity prices are addressed in relation to the problem of energy poverty of households. Methodology: The study is of a theoretical and analytical character. In addition to the review of available dnational and foreign literature, Eurostat data on electricity prices for households in the EU-27 were analysed. Moreover, the paper presents the application of a selected cluster analysis method, i.e. the k-means method, to assess the situation of the EU-27 countries in terms of electricity prices for households in the analysed period of 2011–2020. Results of the research: The result of the analyses undertaken is a presentation of the share of VAT and other taxes and levies in the price of electricity for households. The analyses showed differences between the countries in the structure of establishing the electricity price for households. Only in three countries (Bulgaria, Hungary, Slovakia) it was found that there was no share of other taxes and levies in the electricity price. In turn, the applied k-means method contributed to obtaining the division of countries into four groups reflecting the differentiation in terms of the amount of electricity price for households in the period under study.

Keywords

• electricity price
• energy sector
• sustainable development