Latest news with #VaasaETT
Yahoo
24-05-2025
- Business
- Yahoo
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
24-05-2025
- Business
- Yahoo
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.
Euronews
14-02-2025
- Business
- Euronews
Electricity and gas prices across Europe: How does your country compare?
Energy prices in the EU, which surged following Russia's invasion of Ukraine in early 2022, stabilised after a year. Throughout 2024, the annual inflation rate for energy prices was slightly negative in most months. Energy bills play a crucial role in household budgets, with electricity, gas, and other fuels accounting for 5.5% of total household spending in the EU in 2023. This is especially significant for low-income households, as they have to allocate a larger share of their budget to energy costs. Energy prices vary significantly across Europe, but which countries have the most expensive and cheapest electricity and gas prices? A wide differential The Household Energy Price Index (HEPI), compiled by Energie-Control Austria, MEKH and VaasaETT, provides the most up-to-date data on residential electricity and gas prices across capital cities in 33 European countries. As of 3 January 2025, residential end-user electricity prices varied widely across Europe, ranging from 9.1 c€/kWh in Budapest to 40.4 c€/kWh in Berlin, while the EU average stood at 25.5 c€/kWh. In addition to Berlin, the most expensive cities for household electricity were Brussels (38.5 c€/kWh), Copenhagen (37.5 c€/kWh), London (36.8 c€/kWh), and Bern (36.4 c€/kWh). Budapest, which had the lowest electricity price, was followed by Kyiv (9.8 c€/kWh), Belgrade (10.5 c€/kWh), and Podgorica (11.1 c€/kWh). Electricity prices in the capitals of Central and Eastern European countries tended to be lower than the EU average. The only exception was Prague (35.3 c€/kWh), which was the only capital in the region where prices exceeded the EU average. Electricity prices exceeded the EU average in all capital cities of Europe's five largest economies. Why do electricity prices differ so much? Experts attribute the differences in nominal residential electricity prices to various market-specific factors. "The different energy mix in generation (dependency on natural gas, RES, etc.), supplier procurement and pricing strategies, cross-subsidisation, the tariff mix and the support measures that are still effective in some markets, have an impact on the formation of the prices", explained Rafaila Grigoriou, HEPI project manager & head of VaasaETT's Greek office, and Iliana Papamarkou, denior data analyst at VaasaETT. For example, they added that Berlin topped the list largely due to the significant cost of network charges and taxes. If only the energy component were considered, Germany would rank 10th among the 33 analysed markets, lower than Italy, Great Britain, and the Netherlands. Electricity prices in purchasing power standards When adjusted for purchasing power standards (PPS), electricity price rankings shift significantly, as PPS provides a fairer comparison. As an artificial currency unit, it eliminates general price level differences. When expressed in PPS, electricity prices varied from 10.6 in Oslo to 43.9 in Prague, showing the significant shifts in rankings compared to nominal prices. "Czechia is a characteristic example of how market ranking changes when expressing prices in PPS", Grigoriou and Papamarkou of VaasaETT told. Prague ranks 7th in nominal electricity prices but takes the top spot in PPS. The most dramatic ranking changes include: Bern: Dropped from 5th in EUR to 23rd in PPS Luxembourg City: Dropped from 12th in EUR to 24th in PPS Copenhagen: Dropped from 3rd in EUR to 15th in PPS Warsaw: Moved up from 18th in EUR to 6th in PPS Vilnius: Moved up from 16th in EUR to 7th in PPS These changes suggest that, while Eastern European capitals often have lower nominal electricity prices, lower purchasing power makes electricity a greater financial burden for households. Conversely, Western and Northern European cities may appear expensive in nominal terms but become relatively more affordable when adjusted for PPS. Stockholm is a major outlier in gas prices Across the EU, residential end-user gas prices ranged from 2.5 c€/kWh in Budapest to 33.3 c€/kWh in Stockholm—over 13 times higher than in Budapest. "This can be explained by the nature of the Swedish gas market; the small size of only 77,000 household gas customers in the whole of Sweden of which 50,000 in the isolated gas network in Stockholm", Rafaila Grigoriou and Iliana Papamarkou told. Amsterdam (18.3 c€/kWh), Bern (17.4 c€/kWh) and Rome (15 c€/kWh) followed the Swedish capital. London had the lowest rate among the top five economies at 8.8 c€/kWh. Grigoriou and Papamarkou attributed the gas price disparities to several factors, including "different procurement and pricing strategies, the storage levels, temperature and weather conditions, the interconnection with other markets, cross-subsidisation and the tariff mix". Gas prices in PPS varied from 3.8 c€/kWh in Budapest to 28.3 c€/kWh in Stockholm. Notable ranking shifts include Bern: Dropped from 3rd in EUR to16th in PPS Luxembourg City: Dropped from 10th in EUR to 21st in PPS Copenhagen: Dropped from 3rd in EUR to 15th in PPS Dublin: Moved up from 8th in EUR to 18th in PPS
