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Euronews
24-05-2025
- Business
- Euronews
Energy bills across Europe: What share of the cost is made up of tax?
Rising energy prices after Russia's invasion of Ukraine hit households hard, especially low-income families. Although prices have stabilised somewhat, energy bills are still a burden for many. Taxes make up a large part of gas and electricity costs, and these vary widely across Europe. Some countries offer subsidies or allowances to support households. In those cases, taxes can even appear as negative values. So, how much of your energy bill goes to taxes — including energy taxes, levies, and VAT? In which countries do people pay the most in total taxes? And where do governments step in with subsidies or support schemes? The Household Energy Price Index (HEPI), compiled by Energie-Control Austria, MEKH, and VaasaETT, tracks residential electricity and gas prices in European capital cities. Besides energy and distribution costs, the breakdown shows energy taxes and VAT. As of April 2024, the average share of total taxes in household electricity prices across EU capitals was 22% — made up of 8% energy taxes and 14% VAT. This share ranged from -26% in Amsterdam to 49% in Copenhagen, followed by 41% in Stockholm. The average for EU capitals stands at 22%. In Amsterdam, energy taxes stood at -43%, while VAT was 17%, resulting in a significant negative overall tax share. Excluding this effect, VAT accounts for 17% of the price breakdown. According to the HEPI report, since January 2020, a typical consumer in Amsterdam pays zero energy tax due to the increased amount of tax credit, which exceeds the indicated energy tax amount. On the contrary, they receive a refund on the exceeding tax credit amount. The goal is to encourage electrification and a shift away from gas heating and appliances. A similar case is seen in Luxembourg City, where energy tax is -13% and VAT is 7%. The policy there aims to stabilise prices at 2022 levels. In Valletta, Nicosia, and Dublin, the share of taxes in electricity bills is also relatively low — 11% or less. Besides the two Nordic capitals, the share of total taxes exceeds 30% in several other cities, including Brussels (37%), Berlin (34%), Oslo (33%), and both Madrid and Helsinki (32%). For residential end-user gas prices, the average share of taxes across EU capitals is 28%, which is higher than for electricity. It ranges 5% in Zagreb to 49% in Amsterdam. In the Dutch capital, energy tax for a residential natural gas user makes up around 32% of the end-user price. Residents in Berlin (40%), Vienna (32%), Rome and Stockholm (both 31%), and Paris (30%) face the highest total gas taxes, after Amsterdam. In contrast, following the Croatian capital, Athens (9%), Belgrade (9%), and London (11%) recorded the lowest overall tax shares in residential gas prices. In Vilnius, a typical household receives a tax refund on energy, resulting in a negative energy tax share of -5%. 'Energy taxes depend on national policies, environmental plans and different market structures in general,' Rafaila Grigoriou, HEPI project manager & head of VaasaETT's Greek office, and Ioannis Korras, senior energy market analyst at VaasaETT, told Euronews Business. For example, they noted that Denmark has utilised high energy taxes as a tool for the green energy transition, subsidising renewable energy systems (RES) investment and promoting energy efficiency, making the country a leader in wind energy. The role of national policies in energy taxation is especially clear in some cases. Grigoriou and Korras emphasised that consumers in Amsterdam pay the highest taxes on natural gas in Europe, driven by a national climate policy aimed at reducing gas consumption. On the contrary, households receive a significant tax rebate on their electricity bills. 'This is intended to incentivise a shift away from gas heating and promote electrification,' they added. When comparing cities or countries, it's important to distinguish between the share of taxes in energy bills and the actual amount paid. These are different indicators, as the total tax amount depends on the underlying energy price. For example, the tax share for electricity is 21% in both Rome and Budapest. However, this doesn't mean consumers pay the same in absolute terms. In Budapest, 21% equals 1.92 c€/kWh, while in Rome, it amounts to 6.8 c€/kWh — a significant difference. Household end-user electricity and gas prices differ significantly across Europe. According to HEPI, in April 2025, electricity prices ranged from 9.1 c€/kWh in Budapest to 40.4 c€/kWh in Berlin. The gas prices varied from 2.5c€/kWh in Budapest to 34.1 c€/kWh in Stockholm. When comparing energy prices, it's also important to consider purchasing power standards (PPS). Our article, "Electricity and Gas Prices Across Europe," takes a closer look at prices both in nominal terms and PPS-adjusted values, and explains why these can differ significantly across countries.
Yahoo
15-05-2025
- Business
- Yahoo
Where the grid hits hardest: Energy distribution costs across Europe compared
Energy bills are a major part of living costs. Energy prices vary widely across Europe. Bills include not just energy costs, but also taxes and distribution fees. The share of electricity and gas bills that goes to distribution, essentially what you pay to use the grid, also differs from country to country. So, how much of your energy bill goes to distribution companies in Europe? And which countries pay the most for distribution? Also known as network charges, this portion of the bill mostly includes both transmission and distribution costs. The Household Energy Price Index (HEPI), compiled by Energie-Control Austria, MEKH, and VaasaETT, provides a detailed breakdown of residential end-user electricity and gas prices. The breakdown includes four components: energy, distribution, energy taxes, and VAT. As of April 2024, the share of distribution in household electricity prices ranged from 11% in Nicosia to 65% in Budapest, closely followed by Amsterdam (60%). However, in Amsterdam, the distribution share would drop to 39% if the tax refund were not considered. The capital cities of Hungary and the Netherlands stand out as clear outliers, with more than half of the electricity bill going to distribution. The EU-27 average was 28%. Other high-share cities include Luxembourg City (46%), Podgorica (43%), and Bucharest (42%). Many Central and Eastern European cities such as Kyiv, Vilnius, Riga, Zagreb, Belgrade, and Warsaw have distribution shares well above the EU average. Western cities like Paris (35%) and Lisbon (34%) also fall into the higher group. The Nordic capitals (Helsinki, Oslo, Stockholm, Copenhagen) tend to have lower shares (between 17%–23%). Southern Europe shows some of the lowest distribution shares, including Athens (15%) and Rome (15%). Cities like Berlin (29%), Vienna (30%), Tallinn (29%), Dublin (30%), and Prague (31%) are close to the EU average, showing moderate distribution cost impact. Among the capitals of Europe's top five economies, London and Madrid had the lowest distribution share at 18%. On average across the EU capital cities, the distribution share is slightly lower in gas prices (23%) than in electricity prices (28%). The distribution share in residential end-user gas prices ranged from 10% in Kyiv to 43% in Bern. In addition to Bern, the distribution share exceeded one-third of gas bills in Sofia (37%) and Bratislava (34%). In Dublin, it came close to that level at 32%. Among the EU capitals, Amsterdam had the lowest distribution share at 13%, followed by Zagreb and Tallinn, both at 15%. The variation in gas distribution shares among Europe's top five economies is smaller compared to electricity. London and Madrid had the highest shares at 22%, slightly below the EU average, followed by Rome at 21%. In Paris and Berlin, the shares were even lower—17% and 16%, respectively. Rafaila Grigoriou, HEPI project manager & head of VaasaETT's Greek office, and Ioannis Korras, senior energy market analyst at VaasaETT explained that network costs are determined based on local requirements and national strategies for the development and upgrading of distribution and transmission networks. A significant portion of national network investment costs is passed on to end-user bills through network charges. 'Disparities among markets are primarily driven by their investment plans and are related to electrification demand, level of RES penetration, distributed generation, the age of the network infrastructure etc.' Grigoriou and Korras told Euronews. VaasaETT experts also noted that the comparison of network cost shares in total bills between countries may not always accurately reflect the true significance of network costs in some cases. This is especially true in cases where regulations or support schemes affect the energy component of the bill. Cities like Budapest and Bucharest clearly illustrate this effect. In Budapest, the electricity distribution share is 65%, equal to 5.94 c€/kWh. In contrast, Bucharest has a lower distribution share of 42%, but the actual cost is higher at 6.75 c€/kWh. This is due to differences in end-user electricity prices: 9.1 c€/kWh in Budapest versus 16.1 c€/kWh in Bucharest. The same pattern applies to gas distribution in these cities as well. The breakdown of energy bills can vary over time or during extraordinary situations, depending on the country. The Russian invasion of Ukraine in 2022 is a clear example of such a disruption, which led to sharp changes in energy prices. 'Since the beginning of the energy crisis, there has been a significant number of temporary support measures that involved the reduction or abolishment of network charges or taxes in European countries,' Rafaila Grigoriou told. 'Those have affected both electricity and gas bills and a small number of those are in fact still active in some markets. Slovenia is an example of this for residential electricity customers.' she added. While this article does not aim to analyse or compare final consumer energy prices across Europe in depth, providing these figures still offers valuable context. As of April 2025, household end-user electricity prices ranged from 9.1 € cents per kWh in Budapest to 40.4 c€/kWh in Berlin according to the HEPI. The EU-27 average was 24.7 c€/kWh. Among EU capital cities, gas prices in the same period ranged from 2.5 c€/kWh in Budapest to 34.1 c€/kWh in Stockholm, with an EU average of 11.1 c€/kWh. Euronews compared and analysed residential end-user electricity and gas prices across Europe as of January 2025, examining both nominal prices and those adjusted for purchasing power. The article entitled 'Electricity and Gas Prices Across Europe' also explores the factors driving the differences in energy prices across European countries.
Euronews
15-05-2025
- Business
- Euronews
Europe's energy bills unplugged: Who pays the most to use the grid?
Energy bills are a major part of living costs. Energy prices vary widely across Europe. Bills include not just energy costs, but also taxes and distribution fees. The share of electricity and gas bills that goes to distribution, essentially what you pay to use the grid, also differs from country to country. So, how much of your energy bill goes to distribution companies in Europe? And which countries pay the most for distribution? Also known as network charges, this portion of the bill mostly includes both transmission and distribution costs. The Household Energy Price Index (HEPI), compiled by Energie-Control Austria, MEKH, and VaasaETT, provides a detailed breakdown of residential end-user electricity and gas prices. The breakdown includes four components: energy, distribution, energy taxes, and VAT. As of April 2024, the share of distribution in household electricity prices ranged from 11% in Nicosia to 65% in Budapest, closely followed by Amsterdam (60%). However, in Amsterdam, the distribution share would drop to 39% if the tax refund were not considered. The capital cities of Hungary and the Netherlands stand out as clear outliers, with more than half of the electricity bill going to distribution. The EU-27 average was 28%. Other high-share cities include Luxembourg City (46%), Podgorica (43%), and Bucharest (42%). Many Central and Eastern European cities such as Kyiv, Vilnius, Riga, Zagreb, Belgrade, and Warsaw have distribution shares well above the EU average. Western cities like Paris (35%) and Lisbon (34%) also fall into the higher group. The Nordic capitals (Helsinki, Oslo, Stockholm, Copenhagen) tend to have lower shares (between 17%–23%). Southern Europe shows some of the lowest distribution shares, including Athens (15%) and Rome (15%). Cities like Berlin (29%), Vienna (30%), Tallinn (29%), Dublin (30%), and Prague (31%) are close to the EU average, showing moderate distribution cost impact. Among the capitals of Europe's top five economies, London and Madrid had the lowest distribution share at 18%. On average across the EU capital cities, the distribution share is slightly lower in gas prices (23%) than in electricity prices (28%). The distribution share in residential end-user gas prices ranged from 10% in Kyiv to 43% in Bern. In addition to Bern, the distribution share exceeded one-third of gas bills in Sofia (37%) and Bratislava (34%). In Dublin, it came close to that level at 32%. Among the EU capitals, Amsterdam had the lowest distribution share at 13%, followed by Zagreb and Tallinn, both at 15%. The variation in gas distribution shares among Europe's top five economies is smaller compared to electricity. London and Madrid had the highest shares at 22%, slightly below the EU average, followed by Rome at 21%. In Paris and Berlin, the shares were even lower—17% and 16%, respectively. Rafaila Grigoriou, HEPI project manager & head of VaasaETT's Greek office, and Ioannis Korras, senior energy market analyst at VaasaETT explained that network costs are determined based on local requirements and national strategies for the development and upgrading of distribution and transmission networks. A significant portion of national network investment costs is passed on to end-user bills through network charges. 'Disparities among markets are primarily driven by their investment plans and are related to electrification demand, level of RES penetration, distributed generation, the age of the network infrastructure etc.' Grigoriou and Korras told Euronews. VaasaETT experts also noted that the comparison of network cost shares in total bills between countries may not always accurately reflect the true significance of network costs in some cases. This is especially true in cases where regulations or support schemes affect the energy component of the bill. Cities like Budapest and Bucharest clearly illustrate this effect. In Budapest, the electricity distribution share is 65%, equal to 5.94 c€/kWh. In contrast, Bucharest has a lower distribution share of 42%, but the actual cost is higher at 6.75 c€/kWh. This is due to differences in end-user electricity prices: 9.1 c€/kWh in Budapest versus 16.1 c€/kWh in Bucharest. The same pattern applies to gas distribution in these cities as well. The breakdown of energy bills can vary over time or during extraordinary situations, depending on the country. The Russian invasion of Ukraine in 2022 is a clear example of such a disruption, which led to sharp changes in energy prices. 'Since the beginning of the energy crisis, there has been a significant number of temporary support measures that involved the reduction or abolishment of network charges or taxes in European countries,' Rafaila Grigoriou told. 'Those have affected both electricity and gas bills and a small number of those are in fact still active in some markets. Slovenia is an example of this for residential electricity customers.' she added. While this article does not aim to analyse or compare final consumer energy prices across Europe in depth, providing these figures still offers valuable context. As of April 2025, household end-user electricity prices ranged from 9.1 € cents per kWh in Budapest to 40.4 c€/kWh in Berlin according to the HEPI. The EU-27 average was 24.7 c€/kWh. Among EU capital cities, gas prices in the same period ranged from 2.5 c€/kWh in Budapest to 34.1 c€/kWh in Stockholm, with an EU average of 11.1 c€/kWh. Euronews compared and analysed residential end-user electricity and gas prices across Europe as of January 2025, examining both nominal prices and those adjusted for purchasing power. The article entitled 'Electricity and Gas Prices Across Europe' also explores the factors driving the differences in energy prices across European countries.
Yahoo
26-02-2025
- Yahoo
Nearly all UK undergrads use AI in their studies, according to a new report
Apparently almost all undergraduate students are using AI now, in one way or another. A new report from the UK's Higher Education Policy Institute (HEPI) found that 92 percent of students have used generative AI tools, such as ChatGPT, for their studies. At the same time, 88 percent of these students have used it for exams. These numbers are a tremendous increase from HEPI's February 2024 report in which 66 percent and 53 percent participants relayed use, respectively. The top reasons students reported using AI include saving time, improved quality of their work and getting instant support. Wealthier, STEM-focused and male respondents were more enthusiastic about AI in the survey. Students' main arguments against utilizing AI included cheating accusations, being given fake results or hallucinations and getting biased results. Women and younger students were more likely to voice concerns. HEPI surveyed 1,041 British and international students in the UK during December 2024. Meanwhile, universities tended to score well with students on the integrity of their AI policies. Four-fifths of respondents stated that their school had a clear AI policy and, notably, 76 percent believe their university would spot AI use for assessed work (yes, despite that 88 percent that have done it). Staff are also better prepared to help with AI, with 42 percent of students responding that the staff is "well-equipped," up from 18 percent last year.
The Independent
25-02-2025
- Business
- The Independent
Yes, there is a Europe-wide energy crisis – but must Britain bear the brunt?
Mere months after the last energy price hike, Ofgem has revealed that April's price cap will increase household bills by £111 – that's 6 per cent higher than expected and 9 per cent higher than this time last year, bringing the average to £1,849 per year. 'Rising global wholesale prices for energy are the main reason for the increase' is what Ofgem cited as the motive behind the move. But this just feels like an excuse when we look at the very real fact that Britain already has some of the highest prices in Europe, and many families and elderly people are struggling to keep up. To put it into perspective, of the 33 European capital cities included in the Household Energy Price Index (HEPI) published in December 2024, London was the fourth most expensive at 36.5 cents (€) per kilowatt hour (kWh), beaten only by Germany (40.23c), Denmark (37.31c) and Belgium (36.91c). Now, of course this figure is based on several variables: the source of the energy (coal, nuclear, gas, renewables, oil), the way it is taxed, and any subsidies that may exist. However, if you strip out energy network charges and taxes, Germany would rank 10th, lower than Britain, Italy and the Netherlands. To his credit, Ofgem CEO Jonathan Brearly acknowledged the increase 'puts families under huge stress and increases costs for all customers.' But he also outlined that energy debts 'began during the energy crisis have reached record levels and without intervention will continue to grow.' He's right, of course. But, Mr Brearly, would you like to tell us when that investment is going to be delivered? Polling by YouGov for National Energy Action, the fuel poverty charity, found nearly half (49 per cent) of adults are likely to ration energy in coming months. That is what you call a crisis. The charity is calling for 'additional targeted energy bill support through a social tariff or an expanded Warm Home Discount; a help-to-repay scheme to support households out of debt; and for the government's Warm Homes Plan to provide significant investment to insulate the coldest homes for the poorest households'. I'd like to be wrong about this, but I'm not sure we're going to see any of them. What Ofgem has promised is to address the issue of standing charges. They are a fixed fee we all pay as part of our bills, for connection to the network and to cover the price of discounted tariffs, the green transition and suchlike. OfGem says they are going down in parts of the country, but that is not true of everywhere. The problem with them is they limit one's ability to cut costs by using less energy. Fixed fees are particularly tough on low users. Pensioners would be an example, especially those living alone as many do. Ofgem plans to force all energy providers to offer zero standing charge tariffs but the new rules won't come in until the winter. And these tariffs can also prove to be very expensive unless you're a very low user. Says USwitch, the price comparison side, on the subject: 'In most cases it makes sense to go for an energy plan with paid standing charges as there is a greater amount of choice and they're usually cheaper than plans that don't have standing charges.' To work out whether they'll benefit, people are going to have to turn into energy analysts when they've other things to worry about, such as feeding the kids, paying the mortgage, and the many other financial burdens of modern life. Ofgem's plans are thus no panacea. They're a sticking plaster and one that will only partially ease the financial bleeding for a limited number of people. At this point, consumers might very well be asking quite why the benefits from renewable power generation, which are formidable once the costs of putting up the turbines have been met, aren't being passed on to consumers. There is a technical explanation: the price of electricity is determined by the most expensive source of energy to meet the necessary demand. In the UK, that is gas, which makes up a higher proportion of the mix when compared to say France, where nuclear is king. Needless to say, that isn't going to provide much comfort to those facing sky high bills who may look askance at the wind turbines sprouting up and wonder why they're not helping. As I wrote yesterday, Britain's green economy is booming and that is a welcome development. It helps power economic growth, provides a lot of well paying jobs and reduces the nation's carbon footprint. Trouble is, the project is going to fall flat on its face if people lose faith in it. They're going to do that if they can't see tangible benefits. Soaring energy prices are also the last thing the economy hit businesses, already grappling with Rachel Reeves' tax rises, while rock-bottom consumer confidence will remain nailed to the floor. Politics is about solving problems. This is one that energy secretary Ed Miliband needs to put his mind to, and fast. Neither his pious speeches, the regulator's pious statements, nor woolly sounding technical explanations are going to wash with an increasingly restive public fed up with paying what are shaping up to be Europe's highest energy prices. Secretary of state, do your job. Fix this.
