Price of Electricity in Major Cities of Europe – Cheapest in Belgrade and Kiev

While wholesale prices of electricity are going wild in European markets, for households in nearly all countries, the states are still subsidizing a part of the price this way or another. However, in some countries, considerable price increases have been recorded this year, and the difference between the most and least expensive electricity prices in Europe is nearly eight times (excluding Ukraine).

According to the Household Energy Price Index (HEPI), based on the data of Energie-Control Austria – the Austrian member of the Energy Regulators Regional Association (ERRA), in July this year, residents of London paid as much as 63.04 eurocents for a kilowatt of electrical energy. On the other hand, the cheapest kilowatt-hour is in Kiev, although, considering the situation in Ukraine, those prices can hardly be taken as an indicator of the true state of things.

Ukraine aside, the cheapest kilowatt-hour of all the capital cities in Europe is recorded in Belgrade – 8.11 eurocents per kilowatt-hour.

Near the bottom of the list, residents of Budapest pay cheap electricity at 9.75 eurocents per kilowatt-hour, whereas residents of Podgorica pay 10.25 eurocents per kilowatt-hour on average.

On the other end of the list, right behind the British is Copenhagen, where residents pay 53 eurocents per kilowatt-hour, followed by Rome, where the price is 45.95 eurocents.

The Dutch pay 41.9 eurocents per kilowatt hour, but only after tax exemptions are subtracted, and residents of Prague pay 41 eurocents on average.

The average price in 27 EU states is 17.69 eurocents per kilowatt-hour.

Household electricity bills include the price of electricity itself, distribution fee, various other fees and compensations and the VAT.

The biggest share of the electricity itself in the total price is recorded in Italy at 81%, whereas in Serbia only 26% of the bill is paid to the producer of electricity. In Serbia, distribution costs comprise 46% of the average price, and the country is first in Europe observed by this factor, ahead of Hungary, where distribution costs make up 45% of the total price for households.

In relative terms, the British have the biggest share of various fees and compensations in the final price, at 23%, whereas in Serbia, it is 11%. However, for the British, the VAT comprises on 5% of the price, whereas several countries feature the maximum share of 20%. In Serbia, the effective VAT rate amounts to 17% on average, the Danas daily writes.

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price of electricity in European cities