Study was ordered and paid for by European Commission, Directorate-General for Energy, Contract Number ENER/A4/FV-2015-395/SER/SI2.712709
Abstract
In the period between 2008 and 2015, retail prices for electricity and gas have generally increased, with the exception of gas in industry which shows a slight decrease in the statistics. Higher energy costs and prices have been cited as a factor in decreasing competitiveness of industry in many EU Member States. This report looks at the drivers for developments in energy costs and how these affect households and the European industry. An econometric analysis disaggregates the main drivers in retail costs for electricity and natural gas. Policies determining the increasing number of taxes and levies are analysed one by one on the national level. The impact of prices on industrial competitiveness is analysed for 15 energy intensive sectors, and five energy intensive products. The effects differ strongly by sector and by country. The analysis of energy expenditures in households is split by income levels. In every European Member State, the main impact of increasing retail prices is on households with low income.
