Differences in the Structure of Household Electricity Prices in EU Countries

Abstract

Private households are an important group of energy consumers. Based on Eurostat data, their energy consumption constituted 30% of the final consumption of energy use across the European Union in 2021. The cost of energy is one of the main components of household budgets; thus, the prices provided by energy carriers have a significant impact on energy consumption. The price offered to the final consumer consists of three components: the price of energy and its supply, network costs, and taxes and levies. The values of the three components, however, depend on several factors, among which the structure of the energy markets and energy policies in individual EU countries play a key role. This work aimed to analyze and assess the structure of electricity prices offered to households across EU countries in the years 2019–2021. The differences and similarities between the pricing policies of selected products in the EU and their impacts on households’ purchasing capacity were captured and a non-pattern classification method (k-means) was applied as a research tool. The results indicated that the heterogeneity of the electricity price structure increased significantly over the period analyzed. This may be a consequence of the use of strongly differentiated tools to mitigate electricity price increases and the steps being taken towards low-carbon economies.

Keywords

• electricity prices
• structure of electricity prices
• households
• EU countries
• classification
• k-means